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European aircraft manufacturer Airbus will hold a majority 51 percent stake in the new Tianjin assembly facility, according to Zhang Hongbiao, general manager of China Aviation Industry Corp. Two (AVIC Two).

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The remaining 49 percent will be held by an entity called Tianjin Zhongtian Aviation Industry Investment Co., Zhang said. Investors in the new Chinese company include Hafei Avaiation Industry Co. and Jiangxi Hongdu Aviation Industry Co., both of which are affiliated to AVIC Two, Tianjin Bonded Zone Investment Co., and China Aviation Industry Corp. One (AVIC One), the other leading Chinese aircraft maker.

The Chinese company's registered capital of 300 million yuan (39 million U.S. dollars) includes 180 million yuan from Tianjin Bonded Zone Investment, 60 million yuan from AVIC One, 30 million yuan from Hafei and a further 30 million yuan from Hongdu.

The joint-venture aircraft assembly facility will begin operating early in 2009. By 2011 it will be producing four A320 planes a month. Total investment in the project is estimated at eight to ten billion yuan (1.04 to 1.3 billion U.S. dollars).

(For more biz stories, please visit Industry Updates)