Andrew Doyle/LONDON

FOKKER ELMO has set up a joint venture with two Aviation Industries of China (AVIC) subsidiaries, with the aim of manufacturing electrical-wire harnesses for AVIC's planned AE-100 regional jets and other new types.

Called Lang Fang Fokker, the new company is 60%-owned by Fokker Elmo, part of the Dutch Stork Group, with China Precision Engineering Institute and China National Airborne Equipment sharing the remaining 40%. Lang Fang Fokker is aiming to achieve annual sales of $50 million within five years.

According to Gerard van Beek, general director of Fokker Elmo, the Dutch company will "-provide all the technology" at the new site, 100km (60 miles) outside Beijing, and take responsibility for marketing its products. The factory is expected to begin operations in January 1998. "We will subcontract labour to the Chinese," says van Beek. "The advantage for our customers is that they will always be assured of on-time delivery and quality. Lang Fang Fokker will strengthen the position of Fokker Elmo in the world market due to the low cost of manufacturing in China," he adds.

The scope of the venture could eventually be expanded to include the design and manufacture of entire aircraft electrical systems, van Beek adds.

Source: Flight International