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Xi'an Aero-Engine (Group) Co., Ltd. (XAE)

Xi'an Aero Engine, a military enterprise affiliated to China Aviation Industry Corporation I (AVIC I), is China's major aircraft engine producer. The Shaanxi-based Xian Aero-Engine (Group) Limited ("Xihang Group Co." for short), was established in 1958. Xi'an Aero-Engine is a state-owned large-scale aero-engine manufacturer, and large enterprise group. Xihang is the manufacturing base of China's large-scale aero-engines and one of the 1000 national large sized enterprise groups. XAE has 13,000 employees with more than 2,500 engineering and technical personnel, and posses over 4,000 sets of advanced cold/thermal processing equipment and measuring and testing instruments and machines, out of which 400 sets are CNC and CMM.

Xi'an Aero-engine develops and manufactures turbojet engines, turbogenerator installations, turbo fan engines, and gas turbines. In terms of derivatives, Xi'an Aero-engine produces gas turbines for ships and oil and gas compressor stations. The company develops and produces Turbo-Jet engines, turbine generators, Turbo-fan engines, gas turbines. Xi'an developed China's first engine bomber, the first heavy-duty engine fighter-bomber, the first a completely independent intellectual property rights with the most advanced core machine.

In 2001, the company was restructured into a limited corporation controlled by AVICI, and shared by Huarong Asset Management Corporation, giving birth to Xi'an Aero-Engine Group based onparent-subsidiary system, with Xihang Group as the parent, and asset as ties. Xi'an Aero-engine absorbed the aero-engine manufacturing assets of Xi'an Aero-engine (Group) Limited through an asset swap. Xi'an Aero-engine kicked off a backdoor listing through China Resources (Jilin) Bio-chemical Co., Ltd. on November 20, 2008. In 2009 China Aviation Industry Corporation (AVIC) l listed its aero-engine business with Xi'an Aero-engine PLC (SHSE: 600893) as the platform. Xi'an Aero-Engine (Group) Ltd. accomplished the integral listing by acquisition of CRBC shares and introduction of XAE's main business covering aero-engine (including derivatives) production, foreign trade subcontract production of aero-engine components, production of non-aero components and other related assets. The listed company called Xi'an Aero-Engine plc was formally established on Nov. 20, 2008.

The Xian Aero-Engine (Group) Limited provides products to the army and both domestic and foreign markets. These aviation products include the leading international aviation parts, diversified civilian and common development of the tertiary industry structure. Company products development include the rapier weaving machine, high-speed wire finishing mill, turbine, wind turbine, petrochemical equipment, aluminum-oriented and involve a wide range of industries such as high-tech, high value-added and diversified products group. The company passed the ISO9000 series of quality system certification. The company was listed as a National 863 Program of CIMS application demonstration enterprises. During the "tenth-five" period, it was necessary to promote transference from mechanized and semi-mechanized military industry to digital military industry and upgrading of ability structure in aviation industry.

After 30 years of development, the delivery amount of subcontract production of foreign trade in the Xi'an Aircraft Engine (Group) Corporation increased from 0.127 million U.S. dollars in 1981 to 197million U.S. dollars in 2008. It has become a key supplier under the strategic cooperative partnership with the GE, Rolls-Royce, SNECMA and other companies. XAE has signed long term supply agreements with the top 5 of the world leading aero-engines manufacturers since 1981 and the foreign exchange revenue is more than 30 million USD year on year. The company has partnered with the United Kingdom's Rolls Royce, United States' Pratt and Whitney, and Israelis and Germany companies to establish three joint venture companies; and many internationally renowned aviation enterprises to establish a stable cooperative relationship, foreign trade and earn foreign exchange. For many years it has ranked among the top of domestic counterparts.

On 01 November 2006 Xi'an Aero Engine (Group) Ltd. signed a long-term cooperation agreement with French aero engine maker Snecma. Under the 170 million-U.S.-dollar deal, Snecma will buy 19,112 engine disks from 2007 to 2012. That same day the Chinese firm delivered the 5,000th turbine disk to Snecma in Zhuhai, indicating the Chinese aero-engine maker's rising reputation as a turbine disk production base. The value of the disks delivered to Snecma by AVIC I Xi'an Aero Engine (Group) Ltd. will hit 15 million U.S. dollars this year, and the figure was expected to rise to more than 20 million dollars in 2007.

GE Aviation sourcing team with Xian Aero Engine PLC held a special ceremony on May 6, 2009 in Xi'an, China to celebrate the delivery of its first high pressure turbine (HPT) disk and the 25 years of cooperation between the two companies. The cooperation between GE Aviation and Xi'an Aero Engine started in 1984 when Xian Aero Engine received the first order from GE for a low pressure turbine disk for a gas turbine. By 2008, Xi'an Aero Engine had delivered $83.6 million worth of parts to GE, which represents a 35% increase in the past 5 years.

Xi'an Aero Engine has obtained over 150 prizes for achievement in science and technology above provincial and ministerial level. The company won the national .1996 May 1 labor certificates; won in 1994 State export of electromechanical products advanced units and the Chinese star enterprises title in 1997 won the National households satisfied with the Service units, Shaanxi Province with the contract and trustworthy enterprises, Shaanxi Province advanced quality and efficiency of enterprises in 1991 won China's Aviation industry to create a significant contribution to the 40th anniversary of units.




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