Hafei Group, a subsidiary of the company's effective controller, China Aviation Industry Corporation II, recently signed a framework agreement with Airbus China on the establishment of a joint venture.

According to the agreement, the company and Airbus China will jointly set up a production centre for composite aircraft components in Harbin in early 2009. Hafei Group and related companies will hold an 80% stake, while Airbus China will hold a 20% stake. The production centre will make components available for the Airbus A320 Family and participate in the industrialization and mass production of Airbus A350XWB wide-body aircraft.

The above-mentioned agreement reflects the implementation of the MOU signed between Airbus and the National Development and Reform Commission of China on 26 Nov 2007 and the framework agreement signed between Airbus and China Aviation II.