Shanghai FTZ Hosts Russia-China Commercial Jet JV
by Lorys Charalambous, Lowtax.net, Cyprus
31 May, 2017
The Shanghai Pilot Free Trade Zone has been selected as the base of operations for a new Russian-Chinese joint venture to develop a wide-body commercial jet.
The news comes just over two weeks after the successful maiden flight of China's first domestically developed narrow-body passenger jet, the C919.
The joint venture is an equal partnership between state-owned Commercial Aircraft Corporation of China (COMAC) and United Aircraft Corp (UAC) of Russia, and follows a pact signed by COMAC and UAC in June last year to co-develop a wide-body jet in a ceremony witnessed by Chinese President Xi Jinping and Russian President Vladimir Putin.
The aircraft will be assembled in Shanghai, while research and development will be conducted in Moscow. The new jet aims to take 10 percent of the market from the Boeing 787 and the Airbus 350, today's most advanced jets. Its maiden flight is planned for 2025 and the first jet should be delivered around 2028.
The wide-body jet will seat 280 passengers and have a range of up to 12,000 kilometers. The aim is an economical and efficient jet incorporating heavy use of composite materials.
Guo Bozhi, general manager of COMAC's wide-body department, said suppliers will be asked to bid for the contract to build the new jet's engines by year end.
The Shanghai Pilot Free Trade Zone was created in 2013 and offers companies a number of tax preferences. It comprises a bonded area, high-tech park, financial area, and an export processing zone.
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