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How has Pilatus worked China JV?

How has Pilatus worked China JV?

This has interested me enough to update my annual blog today 🙂

Pilatus Aircraft Industry issued a release today following on from December’s news that it was to set up shop in China. It formally opened up on  August 5th in Chongqing. The new joint venture with TXJY – Beijing Tian Xing Jian Yu Science has an  initial contract to supply  50 PC-12s/PC-6s – but the release doesn’t say where they’re going.

One of the reasons cited for the move is the gradual opening up of Chinese air space – indeed this has been part of the current five year plan. Latest Chinese aviation authority (CAAC) growth figures cited say there is an expectation of  average growth of over ten percent “in the next few years.”

The key interesting point is that Pilatus says it has a majority shareholding in the new company. My understanding is that Chinese JV’s have traditionally been a 51% ownership by the Chinese partner, so am interested to hear how this could be. Pilatus does say that it would not be able to sell its aircraft in China without the new company.

The new entity will produce aircraft components for the PC-6 and PC-12 only, both civilian aircraft.  Unsurprisingly it will not be involved in the production of components for military training aircraft (PC-21, PC-9 M and PC-7 MkII). There is no mention of the new PC-24.

Oscar J. Schwenk, Pilatus’ Chairman said, “”The PC-12 and Pilatus Porter PC-6 are optimum aircraft for this booming market, and we are confident our products have great potential. China has many small airfields with short runways – our aircraft are ideal for operating in and out of them.”
Markus Bucher, CEO, added, “”We believe that a partnership with a local sales partner is the key to success. It also ties in with our strategy of ensuring optimum customer service through the closest possible geographic proximity.“

According to Pilatus, the newly created company and associated activities in China will not impact negatively on production operations in Switzerland.

This does seem to be a strong indication that the turboprop market is gearing up for takeoff in China.

More info when I have it…

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