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Hongdu Aviation Industry Group LTD. ( HAIG )
China Nanchang Aircraft Manufacturing Company (CNAMC)

Hongdu Aviation Industry Group LTD. ( HAIG ) is a large backbone enterprise subordinated to China Aviation Industry Corporation, based in Nanchang, the capital of Jiangxi province. The company was founded in 1951 as the state-run Hongdu Machinery-building Factory "15" and later as the Nanchang Aircraft Manufacturing Corporation [NAMC]. In March 1998 the company's name was changed to Hongdu Aviation Industry (Group) Corporation. According to the needs of enterprise development, Hongdu Group was formed at the core of restructuring in 1998 as a collection of scientific research, production and operation of large enterprise groups, with 24 members and one State-level enterprise. Now, the Group is affiliated to AVIC, with more than ten thousand employees, and is also one of 520 large-scale enterprises in major projects and one of "Observe Contracts and Keep Promise" enterprises in China.

China Nanchang Aircraft Manufacturing Company (CNAMC) produced military and civilian aircraft, cruise missiles, and commercial products such as motorcycles. Nanchang produces the Q-5 Fantan single-seat dual-engined supersonic attack aircraft, which is exported under the designation A-5. It also produces the Silkworm anti-ship cruise missile. Nanchang Aircraft also produces the K-8, a new jet trainer co-designed by China and Pakistan Aeronautical Complex.

The Nanchang Aircraft Factory was founded in May 1951 and it was one of the eariest factories in New China. From September 1951 to 1958 the factory had repaired successively 1,600 aircraft including Yak-18, Yak-11, La-9, Ula-9 and La-11 and had mastered the repair techniques of propeller aircraft.

In 1953 the Nanchang Aircraft Factory was put on a list of 156 major engineering projects to be assisted by the Soviet Union and began reconstruction and expansion on a large scale. Because the central government paid great attention and the Jiangxi provincial government provided great support to the Nanchang Aircraft Factory, its large factory buildings were rapidly constructed and a shift from aircraft repair to aircraft manufacturing was rapidly carried out. In July 1954 the. licenced production of the CJ-5 trainer was succeeded and in March 1958 the production of a general purpose transport Y-5 began.

As a propeller aircraft manufacturer the Nanchang Aircraft Factory began to take shape in 1958, an aircraft design and production team was trained and a set of managerial systems and organizations which could basically meet the requirement of aircraft production were established. But to design and build supersonic jet attack aircraft a further leap in quality was still required.

In 1958 the Aviation Industry Bureau decided that the Q-5 should be developed by the Nanchang Aircraft Factory and the factory should perform a transition from manufacturing propeller aircraft to manufacturing jet aircraft in three years. The transition of the Nanchang Aircraft Factory was realized by the work in two fields. One was to master the design art and manufacturing techniques through the licenced productions of the Soviet MiG-19P and MiG-19PM so that the technical people could know not only "what" but also "why" . A road for the development of the Q-5 was thus paved. The other was to replenish necessary infrastructure including factory buildings and equipment. For example, the original runway length was only 1,520 m which could not meet the takeoff and landing requirement of a jet aircraft.

The factory organized its cadres and masses to participate in the labour to expand the runway. The expansion was completed in 3 months. Other facilities such as the static test building, stamping workshop and ejection test range of rocket ejection seat were also constructed in short periods of time with the labour forces organized by the factory. Taking into consideration the parallel production of propeller aircraft and jet aircraft, the factory adjusted and reformed the layout of the facilities and production lines to facilitate the prototype production of the new aircraft.

After 50 years' development, it has become a high science and technology group combining scientific research, production and marketing of the aviation products, motorcycles, motors, textile machineries and so on. In December 2000, "Hongdu Aviation" shares of stock was listed on the Shanghai Stock Exchange, the first of the listed companies to have aircraft as the main business. Financing through public funds, as in the aviation industry has injected new vitality Hong Dou development.

China aviation industry of Jiangxi Hongdu Aviation Industry Group LTD. is the birthplace of the first aircraft in the new China. For more than fifty-year hard and difficult history, HONGDU had set up "Eight First", it is an outstanding achievements in China's history. HONGDU Group has produced over four thousand of airplanes, and several series of coastal defence missiles such as "HAIYING", "SHANGYOU" etc. At the same time, it produced a passel of civil products, such as motorcycle and motor, projectile weaving machine, paper-making machinery, golf electric cart, electric & power materials, casting and forging etc.

HONGDU is a main base in China for developing and producing attack aircraft, trainers and light utility aircraft. In the past 50 years since its establishment, HONGDU has developed and produced more than ten types of aircraft, such as PT5 and PT6 (Petrel) primary trainers, F6 fighter , A5 attacker series, Y5 transport airplane, N5 agricultural airplane, F12 fighters and K8 basic trainers. The products are mainly serving the Chinese Air Force and Navy, and some of them are sold to domestic companies, agricultural aviation service centers, flight clubs and exported to some Asian and African countries. At present, HONGDU is making efforts to research and develop up-to-date aviation products of a new generation.

The A5 attacker and its updated versions are the single-seat, twin-engine supersonic attacker developed by HONGDU and the first supersonic attackers made in P.R. China. Shenyang Aircraft Corporation [SAC] provided assitance to Nanchang Aircraft for the production of the Q-5. A5 aircraft took maiden flight in June 4, 1965 and has over ten undated versions. A5 aircraft are highly praised by customers at home and abroad and won the National Prize for Science and Technology Improvements. A5 aircraft made flight demonstration respectively on the military review of the 35th and 50th anniversaries ceremonies of the founding of P.R. China to show the military impressive strength and the national power and prestige.

PT6 primary trainer is a single-engine, dual-seat propeller trainer made in China. It is the sole version of trainer serves aviation schools of China for the basic training of student pilots. it's capable of performing all subjects of basic flight training by its excellent flight performance. PT6 primary trainer is the first version which has won the National Quality Prize (Gold Medal).

Jiangxi Hongdu Aviation Industry Co.Ltd. is a high and new-tech enterprise organized and controlled by HONGDU, it is a listed company facing to the world market and civil aviation and taking main business of developing, manufacturing and selling jet trainer, multipurpose agricultural airplane, Petrel propeller trainer and producing aircraft parts for subcontracting. K8 basic trainer is a new generation of jet trainer developed by HONGDU through domestic and international cooperation. K8 trainer was sent to over ten countries for flight evaluation and air demonstration and participated many times international airshows, such as Paris Airshow, Singapore Airshow, Zhuhai Airshow, etc., and performed brilliant flight demonstration. The facts show that K8 trainer can perform splendidly all basic training subjects and part of advanced training subjects. K8 trainer has been exported to several countries in Asia and Africa. The evaluation flights carried out by the users indicate that K8 trainer is an excellent basic trainer aircraft featured by good flight performance, satisfactory training efficiency and low operation and maintenance costs.

HONGDU not only designs and produces light utility airplanes but also has a general aviation service enterprise-jiangxi Changjiang General Aviation Co. Ltd, which has four N5A airplanes and one Y5B transport aircraft used mainly to serve agricultural-and-forestry operation purpose, including rainmaking, aerial forests protection, forests and agricultural seeding, insect killing, aerial photo-graphing, aerial telemetering, advertisement demonstration, cultural & physical sports activities, etc. The service has spread to the area of Guangdong, Fujian, Jiangxi, Hunan, Hubei, Xinjiang, Liaoning and Heilongjiang. In addition, HONGDU owns a of 2500 meters long runway for the operation of airplanes manufactured by the Group.

Agricultural airplane N5 is the first generation of airplane for agricultural and forestry purpose in China developed strictly according to CCAR-23 in the whole process of development, which has been awarded the Type Certificate and Production License issued by CAAC. N5 airplane is equipped with a spraying system for liquid and solid materials. It can operate at extreme low altitude of 3-5 meters for different operations such as plant diseases prevention, insect killing, seeding, fertilizing, weeding, forestry fireproof and insect pests prevention.

In recent years, under the policy of Taking Aviation Products as a Basis, Developing Civil Products in Large Scale, Engaging in Diversified Economy and Speeding up Development, HONGDU has developed new-types of basic trainer and agricultural aircraft with modern international level, developed by investment and co-operation the civilian industry such as motorcycles, projectile weaving machines, sport exercisers, paper-making machines, mopeds and electric bicycles, golf carts, electric power equipment, coating and decoration equipment and building equipment, and cultivated a number of new economic growth points and achieved enterprise diversification. Since 1989, HONGDU has been listed as one of the 500 largest industrial enterprises in China and one of the 512 enterprises specially supported by the central government in 1996.

HONGDU not only speeds up the development of motorcycles and textile machinary, but also develops many kinds of civil products, such as moped, sports exercisers, tobacco machines, paper-making machines, coating and decoration equipment, building equipment, food machines, and aluminum section products. HONGDU accepts subcontract production, and the production with customer-supplied drawings, materials and samples in large quantity from domestic and oversea investors. It also carries out the manufacture of various kinds of machines, electric equipment and production lines.

McDonnell Douglas and China National Aero-Technology Import and Export Corporation (CATIC) entered into an agreement in 1992 to co-produce 40 MD-80 and MD-90 aircraft in China for the country's domestic "trunk" routes. A contract revision signed in November 1994 reduced the number of aircraft to be built in China to 20 and called for the direct purchase of 20 US-built aircraft. The four Chinese factories involved in the Trunkliner program included the Shanghai Aviation Industrial Corporation, Xian Aircraft Company, Chengdu Aircraft Company, and Shenyang Aircraft Company. The Shanghai facility was to be responsible for final assembly of the aircraft. All of these factories are under the direction of Aviation Industries Corporation of China (AVIC) and CATIC. CATIC is the principal purchasing arm of China's military as well as many commercial aviation entities.

In May 1994, McDonnell Douglas submitted license applications for exporting machine tools to China. The machine tools were to be wholly dedicated to the production of 40 Trunkliner aircraft and related work. Under the Trunkliner program, the Chinese factories were responsible for fabricating and assembling about 75 percent of the airframe structure and the tools were required to produce parts to support the planned 10 aircraft per year production rate. The machine tools exported by McDonnell Douglas to China have military and commercial applications. Some of these US exported machine tools were subsequently diverted to a Chinese facility engaged in military production. The machine tools were shipped to three locations contrary to the license conditions and CATIC's assurances regarding end use. Six machine tools were diverted to the Nanchang Aircraft Company, and the rest were stored in two locations in the port city of Tianjin. By August 1996, about 18 months after the diversion was first reported, all the machine tools were at the Shanghai aviation facility.

On April 4, 1995, shortly after MDC's required quarterly inspection of the CATIC facility, MDC reported to the Department of Commerce that the machine tools had been diverted to four different locations, including the Nanchang facility. The government initiated an investigation, which culminated in an indictment returned on October 19, 1999. The Grand Jury returned a sixteen-count indictment for alleged fraudulent misrepresentations made to the United States Department of Commerce in connection with the sale by the McDonnell Douglas Corporation to the People's Republic of China of machinery that was subject to export controls. Count One of the indictment charged Robert Hitt, the Director of the China Program Office at Douglas Aircraft Company, a wholly-owned subsidiary of McDonnell Douglas, along with other defendants, with conspiring to violate the laws of the United States, in violation of 18 U.S.C. s 371 (2000), by deceiving the United States government in the process of completing the sale of the equipment. On May 8, 2001 the United States Court of Appeals for the District Of Columbia Circuit overturned the conviction of Hitt, citing the five year statute of limitations for such a prosecution.

In recent years, HONGDU exerted itself to develop subcontract production under the developing policy of "Harmonious in Military and Civil Business to Make Development Together". In the aviation subcontract production field, HONGDU has made subcontract production cooperation with well-known aviation enterprises at home and abroad, such as US Goodrich, Boeing, Eclipse, Timken, Europe Airbus, Shenyang Aircraft Corporation (SAC), Xi'an Aircraft International Corporation (XAIC), etc. In the subcontract production field of non-aviation products, HONGDU has successfully become the supplier for global top 500 enterprises such as GE, Webtac, etc. Toady, HONGDU is in good situation of "Laying Equal Stress on Military and Civil Business, and Making Both in Mutual Benefit and Development", successful in the way of "Driving Production via Scientific Research, and Promoting Scientific Research via Production", and becomes an large-scale enterprise group with integration of scientific research, production and marketing.



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