China may found a state aviation engine group to pool related assets of firms concerned to boost sector development, reported Xinhua-run cnstock.com.
Recently, media reports said that China might release news on establishing the group company as soon as at the end of January.
So far, many aviation engine experts also confirmed to the newspaper that setup of the group had been prepared for a long while and would be announced soon.
Upon establishment of the state aircraft engine group and the future debut of China's special scientific and technology scheme for aircraft and gas turbine, engine making industry in China is expected to hail a special industry fund of over 100 billion yuan, hold analysts.
Meanwhile, thanks to growing civil and for-military-use market, China's demand for aircraft engine and gas turbines may exceed two trillion yuan in the following 20 years and demand for engine parts, assembling and high-temperature alloy materials are also likely to balloon.
According to media report, assets intended to be injected into the group company involve over forty enterprises including almost all the aircraft engine R&D entities in China, with gross assets totaling 110 billion yuan.
Besides, several state-owned enterprises were also reported to invest on the whole about 35 billion yuan in the aircraft engine group. However, someone with Sichuan Chengfa Aero Science & Technology Co., Ltd. said that there was no new progress over the deal.
As a matter of fact, rumors about China will separate R&D of aircraft engine with R&D of aircraft have lasted for a long time and industry insiders say the separation will be good for breaking China's bottleneck in producing large passenger and freighter aircrafts.
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