Hafei Aviation Industry Co. Ltd (HAI)

AVIC Helicopter has several units under its umbrella. Prominent among them are Hafei Aviation Industry Co and Changhe Aircraft Industries Group. The Harbin Aircraft Industries Group is the parent organisation of the Hafei Aviation Industry Company, and it is not always possible to tell these two companies apart. AVIC Hafei Aviation Industry Co. Ltd (HAI) is the largest helicopter manufacturer in China. Founded in 1952, Hafei is an airframe manufacturer of helicopter and general aviation aircraft in China. Based in Harbin City in the northernmost Heilongjiang Province, Hafei's capabilities include composite and sheet-metal manufacturing, numerically controlled machining, tooling design and production, and complex structure assembly and integration.

As of 2002 China had fewer than 80 helicopters in operation for general use, which meant 0.06 helicopters for every 1 million people, far less than the world average of 3.9 helicopters per 1 million people. Moreover, 97 percent of China's helicopters for general aviation were imported. The absence of domestically made helicopters in China's general aviation sector was not because China-made aircraft were of low quality, but because China's generation aviation market had been all but disallowed from using helicopters.

Early in 1980s, HAI introduced the advanced technology in the manufacturing of the Z9 multi-purpose medium helicopter from Europe. And from the experience of cooperation with company like Eurocopter, HAI's R&D and manufacture capability has been improved and more suitable for the customers' demand and requirements. The H410A helicopter is an upgraded model of the Zhi-9 manufactured by Hafei Aviation Industry Co. Ltd. In July 2002 Hafei received orders for eight H410A helicopters, after it obtained a model certificate from the Civil Aviation Administration of China (CAAC). The H425 is the newest type of Z9 series, Z9 series is the most successful series helicopter in China. By the end of 2008, more than 300 Z9 series helicopters have been delivered to both domestic and oversees customers.

China's Hafei Aviation Industry Co.,Ltd. signed an agreement 03 September 2003 with Bell Helicopter Textron Canada to manufacture multipurpose Bell-430 helicopters. Based in Harbin, capital of northeast China's Heilongjiang Province, Hafei will be the only provider of airframes for Bell-430 helicopters, according to the agreement. Hafei was to make the whole sets of airframes, tails and wings for the helicopters. The Hafei company also had performed subcontract work for Bell Helicopter Textron, manufacturing the cabin module, tailboom and other components for the Bell 430 since September 2005. The Bell-430 helicopter is a nine-seat multi-purpose helicopter, with a maximum speed of 258 kilometers per hour. It can fly a maximum distance of 654 kilometers. Bell Helicopter Textron Canada chose Hafei as its cooperative partner because they had confidence in Hafei's technologies and product quality. The Hafei company was the first Chinese enterprise to cooperate with foreign firms in processing aircraft parts. It has established cooperative relations with several aircraft manufacturers of the United States, Britain, France and Singapore. On January 24, 2008, Bell announced plans to terminate production of its Model 430 after current order commitments are fulfilled in 2010. Production ended after 136 helicopters were completed, with the last being delivered in May 2008.

On 10 June 2004 Boeing [NYSE: BA], with China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II), signed memoranda of understanding to provide parts and assemblies for Boeing airplanes, including the rudder for the Boeing 7E7 Dreamliner. The signing celebration at the Boeing China office marked the first announcement of Chinese suppliers selected for Boeing 7E7 opportunities. Boeing is developing additional opportunities for Hafei Aviation Industry Co., Ltd (Hafei), an AVIC II affiliated company, to produce metallic and composite parts and assemblies for various Boeing jetliners, including the 7E7. The total value of China opportunities with Boeing, including the 7E7 rudder and work on other airplanes, could reach several hundred million dollars.

On 02 June 2005 Boeing [NYSE: BA] announced agreements with Chinese suppliers worth an estimated US$600 million for production of commercial airplane parts and components, including the first firm contract with such suppliers to build parts for the all-new Boeing 787 Dreamliner. Boeing Commercial Airplanes Vice President and General Manager, Airplane Production Carolyn Corvi represented Boeing in Beijing to finalize contracts for the 787 wing-to-body fairing panels between Boeing and Hafei Aviation Industry Co., Ltd. (Hafei), an AVIC II-affiliated company.

Embraer established a joint venture with Harbin Aircraft Industry (Group) Co Ltd and Hafei Aviation Industry Co Ltd - two companies under AVIC II - in Harbin. The newly formed company, called Harbin Embraer Aircraft Industry Co Ltd, involved an equity investment of US$25 million. The joint venture will be capable of producing up to 24 aircraft annually.

On 06 November 2008, Hafei Aviation Industry Co jumped the daily limit of 10 percent on news that it will produce jet engine parts for Honeywell International Inc. The Heilongjiang-based company signed a contract with UK-based GKN Plc on Nov. 5 to offer jet engine parts for 1,350 aircraft from 2011 to 2028, it said in a statement to the Shanghai Stock Exchange. It did not reveal the contract value. The company, primarily engaged in development, manufacture and sale of aerospace products, saw its net profit down to 80.43 million yuan ($11.79 million) in 2009, partly due to a 5.45 percent fall in revenues, said the company in a statement filed with the Shanghai Stock Exchange. The declining profit and revenues mainly stemmed from delays in products deliveries and a 21.5 percent rise in managing expenditures.

The Harbin Hafei Airbus Composite Manufacturing Centre, a joint venture between Airbus and its Chinese partners, opened in March 2011. The new facilities will mainly be used to manufacture composite parts for the A350 XWB, Airbus' latest aircraft program. Construction on the facilities started in June 2009. The facilities were built to the highest industry standards, and eco-efficiency has been a decisive factor when designing its buildings and processes. Key features to minimize its environmental footprint include the management of heating, lighting, power and electricity systems, careful management of the supply chain and environmental awareness training for employees and suppliers. By 2016, around 600 employees are expected to be working at the Harbin Manufacturing Centre.

The 33,800-square-metre state-of-the-art facilities are the first of what will be an 80,000-square-metres manufacturing compound, which will house production, technical support, office areas and other services. The Harbin Manufacturing Centre will produce A350 XWB components including rudders, elevators, Section 19 maintenance doors and belly fairing parts. All in all, that's a significant part of the 5 percent of the A350 XWB airframe work packages to be carried out in China. About 53 percent of the aircraft's structure will be made of composite materials. The Manufacturing Centre uses the world's most advanced equipment and technology, including automated-tape-laying, autoclave, automated trimming, and non-destructive test equipments.

Harbin Hafei Airbus Composite Manufacturing Centre is a joint venture between Airbus China and a group of Chinese partners comprising Harbin Aircraft Industry Group Corp Ltd, Hafei Aviation Industry Co Ltd, AviChina Industry & Technology Co Ltd and Harbin Development Zone Infrastructure Development Co Ltd. It started production of A320 elevators, rudders and Horizontal Tail Plane (HTP) spars in December 2009. Chinese companies contribute 5 percent of the A350 XWB airframe work packages.