China has announced to set up a commercial helicopter production base at Tianjin with an investment of about $1.2 billion. In order to start the construction work, the largest helicopter maker of the country, Aviation Industry Corporation of China (AICC) struck a deal with the municipal government. As per the statement of the head of the Tian Free Trade Zone, Feng Zhijiang, the construction work of the helicopter production base is expected to begin in the first half of this year.

 

The new facility named China Aviation Industry Helicopters Corporation will have a research and development base, assembly facilities and customer services. Medium and heavy helicopters will be manufactured in the new company which is expected to meet the demands of the domestic market. Estimation says that the sales of the company will reach 30 billion to 40 billion Yuan ($4.39-5.85 billion) within 10 years.

 

Feng Zhijiang revealed that two variants of helicopters will be assembled in 2009. It is reported that by the next 20 years, China requires about 3,000 helicopters. According to AICC deputy general manager, Fang Yong the country currently possesses about 100 civilian craft. The government of China has declared the manufacture of helicopters and other aircraft a top priority in its 11th Five-year Plan (2006-2010).