AVIC To Set Up EV Manufacturing Base In Henan

Shanghai, March 13, 2009: (Gasgoo.com) Central China's Henan province yesterday signed a framework pact for strategic cooperation with the Aviation Industry Corp of China (AVIC), the country's largest aircraft-maker. Under the deal, AVIC will build an electric vehicle manufacturing base in Henan province, Beijing Times reported today.

An AVIC official said that the strategic cooperation between AVIC and Henan province will include jointly setting up the electric vehicle and new-energy production base, pushing ahead with the lithium-lion power battery project, and carrying out the R&D, production and trial operation of all-electric vehicles.

After restructuring its subsidiary Changhe Auto and integrating its auto-making operations, AVIC officially formed an automobile industry corporation in Beijing today. At its early stage, the new auto industry corporation of AVIC will consist of Hafei Auto, Changhe Auto, Dongan Power and some other auto or auto-parts companies.

Meanwhile, AVIC's auto corporation will also consider introducing strategic investment and cooperation to expand its auto-making business, which AVIC will continue to develop along with its aircraft-making business.

The electric vehicle manufacturing deal with Henan province is part of AVIC's further expansion into the auto sector, partly in response to the Chinese government's call for developing eco-friendly, energy-efficient vehicles.

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