(Yicai) May 19 -- AVIC Aviation High-Technology, one of China’s leading suppliers of aviation materials, plans to invest CNY918 million (USD127.2 million) in a new factory in Beijing focused on producing large structural components for civil aircraft. 

The project will be funded and developed by AVIC Composite, a subsidiary of AVIC Aviation, the Nantong-based firm announced recently without disclosing the plant’s intended production capacity or expected major clients. AVIC Aviation is a subsidiary of the Aviation Industry Corporation of China, a state-owned aerospace conglomerate.

Construction of the facility is expected to begin later this year, with the plant projected to reach full production capacity by 2028.

According to AVIC, the project will reinforce the company’s leadership in China’s aviation composites market and better serve the needs of large aircraft component manufacturers. The company also sees the expansion as a significant step toward becoming a world-class supplier of civil aircraft parts.

AVIC Composite is one of the few domestic manufacturers of aviation-grade composite materials in China. Its products are used in the AG600, the world’s largest civilian amphibious aircraft, and the C919, China’s first domestically developed mainline passenger jet, according to the company's latest annual report.

Shares of AVIC Aviation [SHA: 600862] rose 1.4 percent to close at CNY23.57 (USD3.30) in Shanghai today.

Editor: Emmi Laine