Shenyang Aircraft Industry (Group) Co., Ltd.

Development Prospects of SAC's Civil Aircraft Business
Since 1985, Shenyang Aircraft Corporation (SAC) has carried out subcontracting production cooperation projects for civil aircraft components with airlines from the United States, the United Kingdom, Germany, Canada, Israel, and other countries. During the 'Eleventh Five-Year Plan' period, the company clearly proposed the development strategy of 'continuing to highlight the aviation main business while emphasizing civil aircraft development' and the development goal of 'achieving sales revenue of 1.49 billion yuan from civil aircraft business by 2010, entering the field of large component design and manufacturing, and becoming an excellent component supplier for global civil aircraft.'
On July 18, 2006, SAC signed a subcontracting contract with Canada's Bombardier Inc. for the Q400 aircraft fuselage sections. SAC is responsible for manufacturing three work packages: the forward fuselage, aft fuselage, and tail section. Bombardier, headquartered in Montreal, Canada, has two major business groups—the Aerospace Group (with four aircraft plants) and the Rail Transportation Group—and is the world's third-largest aviation enterprise, delivering more than 300 aircraft annually. In the 1980s, SAC and Bombardier established a subcontracting production cooperation relationship. Due to adjustments in its global supply chain and the importance of the Chinese aviation market, Bombardier decided to establish a strategic partnership with Shenyang city and SAC. It will discuss future cooperation plans with SAC and determine cooperation projects on other aircraft models such as the C Series.
Introduction to the Q400 Project Preparation Team
Developing civil aircraft is a strategic choice for China Aviation Industry Corporation I (AVIC I) and SAC. The implementation of the Q400 aircraft project in cooperation with Canada's Bombardier Inc. is a rare opportunity for SAC's civil aircraft business development. It will build a new platform for the growth and expansion of SAC's civil aircraft business and serve as a turning point. To this end, SAC decided to establish a new joint venture controlled by SAC to undertake the Q400 subcontracting production tasks and later research and development of the C Series aircraft in cooperation with Bombardier. The new company has received strong support from the Shenyang Municipal Government. Its plant will be located in the Shenyang Aviation Economic Zone near Taoxian Airport, which will gradually develop into a world-class design and manufacturing base for large civil aircraft components.
The new company will be officially registered and established in 2007 as a limited liability company. It will establish an operating system in line with modern corporate systems, implement project management models, adopt flat organizational structures, set up production organization models coordinated with advanced international aviation manufacturing enterprises, use advanced management software such as ERP, and achieve networked and informatized management. It will implement a separation of manufacturing and purchasing, outsource some parts, components, and tooling, maximize the use of social resources, select and cultivate suppliers, and establish a comprehensive supplier management system. The new company will establish new management mechanisms and systems, create a competitive and challenging compensation management system, with salary levels leading within the domestic industry, and pay social insurance and housing fund for employees in accordance with national policies. The new company will form a people-oriented corporate culture and provide employees with good career development space. We welcome social elites interested in the aviation industry to join our team!