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Aviation History
1997
1997 - 0544.PDF
HEADLINES AlliedSignal reveals new Chinese ventures GUY NORRIS/VANCOUVER ALLIEDSIGNAL IS explor ing at least eight new joint ventures in China as part of a $200 million company-wide investment to ensure a long-term strategic stake in Asia and aid selection of its systems for the AE-100 regional- aircraft project. "What we're doing is establish ing a footprint for die business in 50 years, not just die AE-100," says Robert Choulet, senior vice-presi dent for business strategy. He adds: "Obviously, we're hopeful diat our presence there and all die technology transfer will have an impact on equipment selection for die AE-100. We'd like to leverage our presence into high er content, but it's more of a recog nition by senior management diat there's just a tremendous future market potential for aerospace in China, and we need to be diere." First details of die proposed new joint ventures were revealed exclu sively to Flight International at die China Aviation Industry Summit held in Canada on 24-26 February. They include a possible engine alliance wirli China National Aero- Technology Import and Export (CATIC), which will be based in Shanghai. The proposed venture will be 51 % owned by AlliedSignal and 49% by CATIC, and will pro duce parts for various engines and auxiliary power units (APUs). Early candidates include the TPE331 turboprop, TF40 indus trial/marine engine and, possibly, theRE220APU. The aim is to gradually increase the company's engineering capa bility, allowing for die eventual assembly of complete engines in China, as well as a full overhaul capability. "The deal does not involve equity from any of the AVIC [Aviation Industries of China] factories, which has been typical in the past, so this gives us die flexibility to keep our options open," says Choulet. The company could be in business by late diisyear believes AlliedSignal. Odier joint ventures in the "fea sibility stage", include an avionics tie-up with AVIC's Shanghai- based Avionics Institute of China, and another agreement with the Beijing-based BAIN Institute, which is a wheels and brakes spe cialist. AnotJier deal in the "ex ploratory phases" is being dis cussed widi undercarriage special ist company Huaxin in Xian, while yet another is being considered with power-management compa ny Quin Ling in die same city. AlliedSignal is also in the imple mentation phase of its joint venture in Xiamen widi Chinese aerospace company TAECO, which will repair and overhaul APUs, envi ronmental control systems (ECS), and actuation systems. The com pany is also "awaiting final ap proval for the feasibility study report" for its teaming arrange ment with die Chinese Research Institute of Aero Accessories in die Pukuo economic-development zone in Nanjing. AlliedSignal is confident that the plan will get die go-ahead. Wor kers are being recruited and build ing has started. The joint venture will design, develop and manufac ture ECS. A joint venture with China Eastern Airlines to repair and overhaul wheels and brakes began in Shanghai in mid-1996. • See China Aviation, PIS. Bell bid for IAR majority gives Dracula extra teeth ANDRZEJ JEZIORSKI/BRASOV BELL HELICOPTER Textron has submitted a $70 million bid for a majority stake in Romanian manufacturer IAR, lending re newed credibility to talks on li censed production of a Bell AH-1 Cobra attack-helicopter derivative known as die Dracula. Neculai Banea, president of Transylvania-based IAR, says diat Bell wants die 70% stake now in the hands of die Government's State Ownership Fund, plus a fur ther 4.75% held by so-called Private Ownership Funds—effec tively Romania's parliament. The remaining 25.25% will stay in die hands of die current 18,000 private Romanian shareholders. Banea says diat some 60% of die money will go towards clearing company debts. Bell will also invest $12.5 million in upgrading IAR's plant, and provide die company widi subcontracts guaranteeing to keep at least 2,000 of IAR's 2,400 workers employed. The offer is under negotiation widi die Government in Bu charest, and a decision was expect ed in late February. The recently elected Government, led by prime Bell may give Romania more bite for its bucks with Dracula minister Victor Ciorbea, has com mitted itself to rapid progress on privatisation, which had stalled under die previous administration. At die same time, Banea hopes to have a signed contract for 96 Draculas with the Romanian de fence ministry, along with four contracts with die US company covering the licence agreement, die supply by Bell of materials and subassemblies, training of IAR per sonnel in Texas, and technical sup port. The Romanian Government has already given a commitment to fund the programme, widi die pos sibility of drawing money from "additional sources" — such as banks or investment companies. Banea estimates die cost of die pro gramme at about $1 billion. The helicopter is based on the AH-1W Supercobra airframe, powered by two General Electric T700 turboshafts, but will have new weapons and avionics from an as-yet-unspecified supplier. Banea says diat die engines are to be man ufactured under licence by Turbo- mecanica in Bucharest, and that General Electric has expressed an interest in acquiring an initial 20% stake in die engine manufacturer as part of the deal — although rival manufacturers have also expressed interest in acquiring holdings. The ministry is expected to decide on die weapons and avionics supplier this month. Under con sideration are Elbit and Litton. Banea says diat Bell also plans to put production of commercial- helicopter subassemblies and com ponents for Bell Canada into IAR, as well as a package of work for Textron. "We are expecting some Cessna activities to be transferred here, regarding maintenance for European aircraft fleets," he says. It is unclear how die deal could affect IAR's relationship with Eurocopter France. The Rom anian company has licences to manufacture and support Puma and Alouette III helicopters, and still hopes for a deal allowing it to build die Ecureuil light helicopter. Banea says that Bell is to have talks with Eurocopter to "...smooth die relationship" and seek a solution protecting both companies' interests. • 6 FLIGHT INTERNATIONAL 26 February - 4 March 1997
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