Cessna Aircraft signed a contract with China Aviation Industry General Aircraft (Caiga) to form a joint-venture company to perform final assembly of Cessna Caravan turboprop singles in Shijiazhuang, China, for the Chinese market. The contract, announced today, stems from the strategic framework agreement that Cessna entered into with Caiga parent company Aviation Industry Corporation of China (Avic) in March.
Under the deal, Cessna’s Wichita plant will supply components and parts manufacturing and subassemblies for the Caravans to be sold by the joint venture. Final assembly, paint, testing, interior installation, customization, flight-testing and delivery of the Cessna Caravans to in-country customers will be performed at the Shijiazhuang facility.
Management of the joint venture will include board members from both Cessna and Caiga, with the general manager to be nominated by Cessna and the deputy general manager to be nominated by Caiga.
The contract also includes the possibility of designing and assembling new Cessna utility turboprop models in the future. Formation of the joint-venture company remains subject to various government approvals, the companies noted. Earlier this month, Cessna and Caiga agreed on a joint venture to assemble Citation XLS+ twinjets in China for the Chinese market.