Turin, Italy-based Avio is to build a joint venture production facility with China's AVIC Dongan and Avicopter in Harbin this year.
The plant will mainly develop and manufacture power transmission systems for commercial turboprop and -shaft engines for the Chinese market. However, it will also fabricate accessory drive trains for commercial aero engines as well as components for marine and industrial applications.
Avio will have a 50% stake in the company, with AVIC Dongan holding 42% and Avicopter the remaining 8%. The total investment is expected to be over €150 million ($200 million).
Construction works on the 97,300m² (1.05 million ft²) site are to begin in April, with operations due to start in early 2012.