CASG has huge deal with Harbin China
Here are some details as reported by Shen Nin of the CHINA DAILY, regarding the signing of the deal between CA$G and HAMC in China. The interesting part is forecasted 200 Panda's to be sold over 10 years based on purchases from HAMC....
Flying into American market
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HARBIN Aircraft Manufacturing Corp (HAMC), a subsidiary of Aviation Industries of China, signed an agreement yesterday with Canadian Aerospace Group, to sell 200 Y-12 IV aircraft within ten years. This move signals China's landmark entry into the North American aviation market. The 19-seat regional aircraft will be manufactured in Harbin, located in Northeast China, and sent to Canada for completion and sale by Panda Aircraft Corp, an arm of Canadian Aerospace Group sited in North Bay, Ontario.
Under the terms of the agreement between the two companies, Canada will provide value-added manufacturing and equipment to cater to customers' different requirements.
Sikorsky Aircraft along with Pratt & Whitney will also act as partners in the project.
The total commercial benefits derived from this deal for both Canada and China are expected to exceed US$800 million over the next ten years.
The deal was one of 13 new business initiatives launched by Canada's International Trade Minister Sergio Marchi, who led his first official trade mission to China on Saturday. The business delegation consists of 84 representatives from Canadian corporate and financial circles.
The new business deals amount to over US$300 million in commercial contracts and agreements, in addition to US$48 million in investments. The deals involve a number of sectors, including aerospace, construction, electric power, manufacturing, medical supplies and education.
"The very nature of Canada's trade relationships with China is changing and maturing," said Marchi.
Harbin Aircraft Manufacturing Corp reported that 80 of its Y-12s have been exported to 18 countries in Asia, Africa, South America and the South Pacific.
HAMC began developing the light-duty aeroplane in 1980. The Civil Aviation Authority of Britain and the US Federal Aviation Administration have certified that the aeroplanes meet safety and reliability standards.
Y-12 IV aircraft, which are simple and easy to operate and manoeuvre well, can take off and land on rough runways. The aircraft are suitable for carrying passengers or cargo, and they can be used for parachuting, airdropping, geological surveys, aerial photography, maritime surveys, tourist flights and forestry seeding.
The aeroplane, which has a take-off weight of 5.67 tons, can fly 1,310 kilometres at an altitude of 7,000 metres.
HAMC, in collaboration with the China National Aero Technology Import and Export Corp, has cultivated the African, South American and Southeast Asian markets by participating in air shows and by allowing flexible payment schemes for those buying the aircraft.
HAMC, which envisions a bright outlook for its sales, predicts that the worldwide demand for regional passenger aircraft seating less than 20 people will surpass 1,400 by 2005.
Apart from the Y-12 series, HAMC has successfully developed the helicopter, model EC120, by working with Eurocopter France and Singapore Aerospace.
HAMC also serves as part and component supplier for airframe manufacturers in the United States, Britain, France and the Netherlands.
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