Bloomberg news
written by The Associated Press
Friday January 21, 2011
CHICAGO (AP) — General Electric Co. said Friday it has formed a joint venture with a Chinese aviation company to develop and market avionics systems for commercial aircraft.
The venture is an equal partnership between GE Aviation and Aviation Industry Corporation of China.
Dubbed GE-AVIC Civil Avionics Systems Company Ltd., the venture will initially focus on developing integrated avionics systems for the C919 aircraft. Anticipated deliveries of the C919 represent a potential market value for the joint venture of about $2 billion, GE said.
A separate joint venture that includes GE already has the contract to provide the engines for the C919 aircraft.
GE-AVIC and its C919 program-related work will maintain at least 300 high-tech jobs in both the U.S. and China, GE said.
"The joint venture will work to secure systems and other avionics products on future aircraft adding to the overall economic value and jobs created," said Lorraine Bolsinger, president and CEO of GE Aviation Systems.
The joint venture will be BASED in China and will be the single path to market for commercial aircraft integrated avionics systems for GE and AVIC.
Both companies also will provide avionics products to the joint venture as a customer and distributor.
Shares in GE gained $1.51, or 8.2 percent, to $19.95 in afternoon trading.
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