AVIC to merge aero-engine companies

State-owned Chinese news agencies reported on 17 April that eight AVIC affiliates are expected to invest CNY2.94 billion (USD474 million) into establishing a new entity that will be tasked with heading China's efforts to develop and build aero-engines for commercial airliners and military aircraft.

The Aviation Industry Corporation of China (AVIC) is planning to merge several subsidiaries involved in aero-engine manufacturing in a bid to spur capability advancements.

The merger is expected to be led by AVIC's largest engine manufacture, the AVIC Aviation Engine Corporation - formerly the Xian Aero-Engine Corporation. This company changed its name in January 2015 in a move thought to be in preparation for the merger.

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