Safran and AVIC sign agreement on the creation of common entity in China in the field of turboprop engine for commercial aircraft

Zhuhai, China, 12-11-2014 — /EuropaWire/ — Safran and AVIC signed today, through their respective companies Snecma and SAIC, a framework agreement on the creation of a common entity in China in the field of turboprop engine for commercial aircraft. The aim of this cooperation is to design, test and produce power turbines and flame tubes for the two parent companies. This agreement was signed by François Planaud, Snecma (Safran) Vice President & General Manager Commercial Engine Division and Peng Jianwu, Chairman of SAIC (AVIC), with the presence of Maurice Gourdault-Montagne, Ambassador of France in China; Bruno Cotté, Executive Vice President-International of Safran; and Li Fangyong, Executive Vice-President of AVIC.

Snecma and SAIC will hold respectively 50% of total stock right in this new common entity located in China, which will hire around fifty specialized engineers (most of them will be recruited locally), meanwhile, this new entity will have facilities of design, testing and production.

After the announcement of this project and the signature of the Memorandum of Understanding (MoU) in March 2014, presented by the President of the French Republic, Mr. François Hollande and the President of the People’s Republic of China, Mr. XI Jinping, therewith the signature of the Memorandum of Agreement (MoA) in July 2014, this signature marks a crossing of a new stage for the cooperation between these two groups.

The agreement has, moreover, extended the partnerships established over 30 years among Safran, AVIC and other companies of aviation industry and of Chinese civil aviation. It completes particularly the agreements signed in the past: such as Ardiden 3C / WZ16 (developed through the cooperation between Safran Turbomeca and AVIC Dong’An); COMAC ARJ21 Program (flight control restitution system supplied by Sagem) and C919 program (equipped with LEAP engine of CFM International*, nacelle of Nexcell** and wiring systems of Labinal).

This signature strengthens also years’ partnership in the academic sector through university cooperation, and further exchanges and joint seminars will be continued between Safran University and AVIC subsidiaries.

During the signature ceremony, Bruno Cotté appreciated, on behalf of Safran, this new step which increases the momentum of cooperation with AVIC, in line with the strategic agreement signed between these two groups in 2010. Li Fangyong, on behalf of AVIC, said that this cooperation is a breakthrough and witnesses once again decades of the friendly cooperation relationship between China and France in aviation, which laid a solid foundation for the new generation turboprop’s research and development for both sides.

* The LEAP engine is a product of CFM International, a 50/50 joint company between Snecma (Safran), France and GE, USA.

** Nexcelle is a 50/50 joint venture of Aircelle (Safran) and Middle River Aircraft Systems (GE Aviation).

About Safran
SAFRAN is an international high-technology group, leading supplier in the fields of Aeronautics and Space (propulsion and equipment), of defense and of security. With presence on all continents, the Group employs 66,300 people for a turnover of € 14.7 billion in 2013*. Composed by several companies, Safran holds, alone or in partnership, leading position of global or European markets. In order to respond to the changes of market, the Group engages in research and development programs which in 2013 accounted for an expense of 1.8 billion euros. Safran is listed on Euronext Paris and is part of the CAC 40 index.

*Turnover in 2013 adjusted for IFRS11 impacts amounted to € 14.4 billion. For more information, / @SAFRAN on Twitter

About AVIC
Aviation Industry Corporation of China (AVIC), a large state-owned enterprise in China and the main force of Chinese aviation industry, is one of the most important members in the world aviation industry. AVIC has the different industrial divisions such as aeronautic equipment, transporter, aero engine, helicopter, airborne equipment and system, general aircraft, aerospace research, trade logistics, assets management, engineering construction planning and automobile industry, etc., with more than 200 subordinate units, over 20 listed companies and around 400,000 employees. AVIC ranks No. 178 on Fortune Global 500 companies of the Fortune Magazine in 2014. China National South Aviation Industry (Group) Limited Corporation (SAIC)is the main turboshaft and turboprop manufacturing unit of aero engine division in AVIC.
See more information about AVIC at:


Direction de la Communication
2, bd du Général Martial Valin
75724 Paris Cedex 15 – France

Press contacts:
Catherine MALEK
Tél +33 (0)1 40 60 80 28
Caroline COUDERT
Tél +33 (0)1 40 60 82 20

AVIC Engine
International Cooperation Department
Jia5-19, Shuguangxili,
Chaoyang, Beijing, China

Press contact:
LIU Xiaojia
Tel +86 10 58 35 49 65

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