Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) has formed a joint venture with Chinese state-owned aircraft maintenance enterprise Lingyun (Yichang) Science and Technology Group Co. Ltd. This joint venture in Hubei Province will be IAI's first local Chinese maintenance, repair and overhaul (MRO) enterprise. The joint venture will expand civil maintenance services and cargo conversion, and lay the groundwork for additional business.
IAI is a world leader in the provision of maintenance services for aircraft, engines and components, including heavy maintenance, modifications, upgrades, conversions and development programs.
Cooperation between the two companies has received strong support from the Chinese People's Association for Friendship with Foreign Countries (CPAFFC), as well as from local municipal and provincial governments.
IAI Bedek Aviation Group VP Yosi Melamed said, "This is IAI's first MRO joint venture in China and is part of IAI's strategy to extend our business into the growing Chinese civil aviation sector. This agreement will lead to substantial cooperation between our two companies to the mutual benefit of both parties."
Lingyun chairman Sun Jian said, "The establishment of the joint venture demonstrates the concepts of complementary advantages and win-win cooperation. We will cherish this opportunity to cooperate, and will make full use of resources from both sides, to make our joint venture business prosperous and shape the joint venture into a top class company in China and thereby elevate the aviation maintenance service of the joint venture to a leading international level."
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2016
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