(Yicai Global) Feb. 5 -- AVIC Industrial Investment Co, a wholly-owned subsidiary of AVIC Capital Co.[SHA:600705], will invest CNY31.5 million (USD5 million) for a 21 percent of equity in a newly-established helicopter venture which will engage in maintenance of Russian-made helicopters. The deal indicates increasing ties between the two countries in the field of defense and aerospace.
China-Russia Helicopter Joint Technology Co. will have a registered capital of CNY150 million and its capital subscribers will include AVIC International Aero-Development Corporation, AVIC Helicopter, and Citic Offshore Helicopters Co. The new company will focus on Russian-made helicopter maintenance, overall unit and parts sales, alteration, and other relevant services.
Citic Offshore Helicopters will contribute CNY73.5 million for 49 percent of equity; AVIC International Aero-Development and AVIC Helicopter will invest CNY22.5 million each for 15 percent equity, respectively.
Through the equity shares of its subsidiaries, namely, AVIC Capital, AVIC International Aero Development and AVIC Helicopters, China's state-owned Aviation Industry Corporation of China, or AVIC, will be the main controller of the helicopter company.