Monday, October 5, 2009

China's Xian buys European composites manufacturer

By Leithen Francis

Chinese aircraft-maker Xian Aircraft (XAC) has signed an agreement to buy Austria's FACC, a company that makes composite parts for commercial aircraft. FACC says XAC has signed an agreement to buy 91.25% of FACC subject to regulatory approvals that are expected to be completed by year-end.

"After the completion of the acquisition, a share capital increase will be carried out, raising shareholders' equity from the current €40 million ($60 million) to no less than €80 million." The capital raising will help with FACC's business development, it adds. FACC's current owner, Australian holding company ACC Kooperationen und Beteilgungen, will retain 5% equity and Stephane Ges will retain 3.75%, it says.

The Austrian company says XAC is committed to maintaining operations in Austria. XAC manufactures China's MA60 turboprop and is a major supplier to China's ARJ21 regional jet and C919 programmes. It also makes parts for western aircraft-makers such as Airbus.

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