(Yicai) Dec. 17 -- Shares in AVIC Chengfei surged today after the Chinese aircraft manufacturer, which recently won a design contract for the Haolong cargo space shuttle program, said that it will build an aerospace equipment assembly base in southwest China, which will include cargo space shuttle facilities, marking a major step forward for China’s cargo transportation project.

AVIC Chengfei’s stock price [SHE:302132] closed up 6.1 percent at CNY77.81 (USD10.66). Earlier in the day it surged 10 percent to CNY81.40 (USD11.50).

The project will be carried out by AVIC’s wholly-owned subsidiary AVIC Chengdu Aircraft Industry and will be located near Chengdu's Wenjiang Airport, according to the announcement made last night.

Investment in land and new workshop buildings is estimated to be approximately CNY421.8 million (USD57.8 million), while total fixed asset investment for the project is expected to reach around CNY1 billion (USD137 million), it said.

The new base will lay the foundation for the high-quality development and production of aerospace equipment, including the Haolong cargo space shuttle, the announcement said. No further details, including the construction timeline, were given.

China’s Manned Space Engineering Office first announced the launch of the Haolong cargo space shuttle program in early 2021. The initiative aims to diversify cargo transportation options for the country’s space station and explore the development of low-cost transport vehicles. In late October 2024, the office said that the cargo shuttle proposal submitted by AVIC Chengfei was selected as one of two winning designs and had secured a flight verification contract.

Editor: Kim Taylor