Shanghai will host a new joint-venture between a Chinese State-owned aviation company and a subsidiary of US-based General Electric Co (GE) to manufacture parts for commercial aircraft.

The Aviation Industry Corporation of China (AVIC) said that the business of the new joint-venture, equally owned by both AVIC and GE Aviation, will initially focus on integrated avionics systems for the C919 passenger jet, an airliner developed by Shanghai-based Commercial Aircraft Corporation of China Ltd, China Business News reported Sunday.

The new joint-venture is to supply comprehensive avionics systems to the global commercial aircraft market, as well as distribute other products made by both GE and AVIC, according to the report.

Zhang Xinguo, deputy general manager of AVIC, said that the cooperation between AVIC and GE in sharing experience, specialized technical skills and talent will help to bring highly competitive avionics systems to the market.

"The joint venture will work to secure systems and other avionics products on future aircraft, adding to overall economic value and creating jobs," said Lorraine Bolsinger, president and CEO of GE Aviation Systems. "The joint-venture and C919 program will support and maintain at least 300 high-tech jobs in both the US and China."

"GE and AVIC will together develop a world-class engineering organization and the joint venture itself will be creating new intellectual property and new technology," Bolsinger added.

AVIC group is a large State-owned enterprise. The company's operations include  a wide range of business units, covering defense, transportation aircraft, aviation engines, helicopters and avionics systems. The company has a total of 400,000 employees.

GE Aviation is a provider of jet engines, components and integrated systems for commercial, military, business and general aviation aircraft.

Global Times