Xian Aero Engine (XAE), the Chinese Company involved in the aeronautical propulsion sector, and Avio, the international Italian based group and leader in aerospace propulsion, signed a Memorandum of Understanding at the China International Aviation & Aerospace Exhibition, Zhuhai, for setting up a equity joint venture aimed at establishing a leading centre of excellence that will be focused on development and manufacturing of combustors for civil aircraft, marine engines and turbines for industrial use, including relative components, mainly intended for the Chinese market.

The centre of excellence will be founded on Avio's technical and management skills, linked to the XAE domestic and international market experience, and will be located in the XETDZ area (Xian Economic and Technologic Development Zone) in Xian, North West China.

Thanks to the support of Avio and its consolidated experience, this agreement will allow, among other things, the Chinese XAE to increase the level of cooperation with European industries, and to join into the worldwide aviation supply chain.

Moreover, the centre of excellence will be able to promote itself as world-class manufacturing centre for combustors for the Chinese engine to power the Comac C919, the narrowbody aircraft, entirely 'Made in China'. In order to take advantage of these opportunities, Avio signed - at the Zhuhai Airshow - a Memorandum of Understanding with ACAE, a Business Unit of AVIC being responsible for development of the commercial turbofan engine for Comac C919 aircraft.

In order to support the development in China, Avio has recently set up Avio (Beijing) Aviation and Aerodynamics Technology Co Ltd., a company based in Beijing and entirely owned by Avio.