Information of TTFly:  The Chinese government has formally launched an aero-engine company in an effort to design and build engines to power Chinese-built aircraft.

The new entity -- China Aviation Engine Group -- has a registered capital of 50 billion yuan (US$7.62 billion). Its stakeholders include Chinese aerospace firm AVIC International Holding Corp. (AVIC), Commercial Aircraft Corp. of China (COMAC), Beijing State-owned Assets Administration Center, and the state-owned Assets Supervision and Administration Commission of the State Council.

The new company consolidates all AVIC engine production subsidiaries, which include AVIC Aero-Engine Control, AVIC Aviation Engine Corp., Sichuan Chengfa Aero Science & Technology, and Shenyang Engine Design Research.

Cao Jianguo, the former GM of China Aerospace Science & Industry Corp., has been appointed as chairman of the new company. AVIC deputy GM Li Fangyong has been appointed general manager.

Until now, all Chinese-made aircraft have been powered by engines built by non-Chinese manufacturers: The COMAC C919 is powered by LEAP-1C engines built by CFM International (a joint venture between GE Aviation, a division of U.S.-based GE, and Snecma, a division of Safran of France), while the AVIC ARJ21 is powered by CF34-10A engines, which are built by U.S.-based GE Aviation.