Xian Aircraft is planning to set up a final assembly centre for the MA700 regional turboprop in an area near the Xian Xianyang International Airport.
Plans for the type's final assembly line and delivery centre are in its initial stages, and the facility is likely to be located in the new airport town of the Xixian new area, according to a statement on the Xixian new area website.
It adds that Xian Aircraft will also set up a research and development company in the second half of 2013 to focus on the development of the MA700 aircraft.
Xixian new area is located between Xian and Xianyang in central-northern China. There are also plans to build an MRO base at the new airport town.
Incentives for setting up an assembly line in the area include tax savings, while the airport could also build a dedicated runway for the MA700 to conduct flight tests.
An AVIC official told Flightglobal Pro in January that the airframer has completed its initial study plan and market research on the MA700 and has formed a committee to start developmental works.
The twin turboprop will have the capacity to sit between 70 and 90 passengers, compared with the MA600's 52. Like its smaller variant, the MA700 will also be manufactured by Xian Aircraft.
The MA600 final assembly line is located in Yanliang.
AVIC is aiming to receive certification for the type from both the Civil Aviation Administration of China and the US Federal Aviation Administration by 2017.
The MA700 is likely to compete with the ATR 72-500/600 and Bombardier Dash 8 Q400 in the larger turboprop passenger aircraft segment.