While at the 2013 Aviation Expo China, Bell Helicopter, a Textron Inc. company (NYSE: TXT), announced it had reached agreement with its independent representative, Reignwood Investment, Ltd. (Reignwood) for the purchase of 12 Bell helicopters, including 10 Bell 407 and two Bell 429 aircraft. In addition to this agreement, Bell Helicopter also entered in to a Memorandum of Understanding (MOU) with Reignwood to explore future business opportunities in the growing China market.
The MOU permits the two parties to explore potential opportunities to collaborate and grow the Chinese helicopter market. While specifics are not defined in the MOU, discussion and collaboration could occur in areas such as sales and marketing, service and support, training, reassembly, completions or customizing for Reignwood's approved territory. Contrary to inaccurate media reports, the MOU does not include a commitment for the purchase of additional aircraft or the creation of a Bell Helicopter manufacturing site in China.
"We are pleased that Bell Helicopter and Reignwood have reached an agreement to further discussions regarding growth opportunities in the Chinese market," said Chris Jaran, managing director, China. "Reignwood will serve as a key resource for Bell Helicopter in this region as we continue to grow our global presence."
Founded in 1984 as a general trading, real estate development and tourism organization, Reignwood Investments quickly grew to become a multinational company expanding its investments into key growth industries such as aviation, energy and mining, financial services, real estate and consumer goods.
Date: Oct 11, 2013