Aviation Industry Corp. of China (AVIC), the country's largest state-owned aircraft producer, is to invest 10 billion yuan (1.58 billion U.S. dollars) in engine research and development, according to an announcement on Wednesday.
Zhang Jian, vice president of AVIC Aviation Engine Holding Company Ltd, said the company had launched a special program in engine research and development in order to catch up with advanced international levels.
"We estimate the accumulative investment nationwide in the short run will surpass 100 billion yuan (15.8 billion U.S. dollars)," Zhang revealed at the ongoing China International Aviation & Aerospace Exhibition in Zhuhai, Guangdong Province.
Besides state-owned enterprises, many private companies were also willing to join the aviation engine industry, he added.
China's aviation industry has seen rapid development and prompted robust demand for domestically made engines, said Zhang.
With 80,000 staff members, AVIC Aviation Engine Holding Company Ltd produces engines for both military and civilian planes. In 2011, the company's sales revenue hit 40 billion yuan.
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