Cessna and China Aviation Industry General Aircraft (CAIGA) have entered a joint venture contract for the final assembly of Caravan turboprop aircraft in China.
"The joint venture contract also contemplates the possibility of designing and assembling new models of utility turboprop aircraft in the future," says Cessna.
The deal stems from a strategic agreement signed on 7 May between Cessna, CAIGA and the Shijiazhuang municipal government. CAIGA is a unit of the Aviation Industry Corporation of China (AVIC).
Under the joint venture deal, Cessna's operations at Wichita in Kansas will provide parts, components and sub-assemblies for Caravan aircraft. The Shijiazhuang-based joint venture will conduct final assembly, painting, testing, interior installation, customisation, flight testing and deliveries.
The joint venture is also tasked with marketing the aircraft in China.
Its management will comprise board members from Cessna and CAIGA. The general manager will be nominated by Cessna and the deputy general manager, by CAIGA.
Formation of the joint venture company remains subject to various government approvals and customary conditions, says Cessna.
The Caravan joint venture follows the 14 November announcement at Airshow China 2012 that Cessna and CAIGA had entered a joint venture called Cessna-AVIC Aircraft (Zhuhai). This Zhuhai-based company will perform the final assembly and marketing of Citation XLS+ business jets in China.