Cessna, Caiga Seal Deal To Build Caravans in China

AINalerts » November 27, 2012
November 27, 2012, 3:10 PM

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.

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Anon
on November 28, 2012 - 4:21pm

So we have Skycatcher, Excel and now Caravans heading off to China. Looking after the city that built the company is obviously no longer a priority. I bet Scott Donnelly must be rubbing his hands together...

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Mike
on November 30, 2012 - 2:35pm

Of course he is… We have a President who hates Business Aviation. We have an EPA who hates airplanes. We have labor unions that get their jollies off bankrupting companies, and disrupting operations (i.e American). The EU thinks airplanes are the root of all the “””Climate Change”””. We have the highest corporate tax rates, with a President that wants to raise them even higher. He is just protecting his company from our own President and this war on aviation.

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Greg
on November 28, 2012 - 4:22pm

This is most likely the second step to having all cessnas made in china. The first was the c-162. My company was in the final stage of buying a king air-350 when beech announced it would be sold to china. We cancelled immediately. If Cessna continues, I feel that they will lose many customers. I am not against free(fair) trade, but against the constant flow of jobs away from America and to a communist country of any name. Also I have never bought anything from china that lasted untill I received my credit card bill for it. Cessna says it is for the Chinese market, even if that is so, will they be resold at a discount in the U.S. causing demand for American aircraft to plunge. Just my thoughts on the subject, for what it's worth.

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Joe
on November 28, 2012 - 4:26pm

The continuation of the training of our future competitors is just mind boggling. Down the road when the Chinese have taken all of the aircraft manufacturing skills we have provided them and then eat our lunch we will have no one to blame but ourselves. Are there any US Aircraft manufacturers that see this? This is just truly disheartening all for the sake of short-term profits.

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Mike
on November 29, 2012 - 12:29pm

I hate say it... China is where the demand is, and Cessna is doing what they need to do to stay in business. I can't blame them really...

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