The contract for a new joint venture to produce and assemble jet engine nacelle components in Xi'an, China has been signed today by Aircelle of the Safran group and Xi'an Aircraft International Corporation (XAIC), a subsidiary listed company of AVIC Aircraft Corporation Ltd.

Once created, this joint venture's first priority will be to build and assemble nacelle components for China's new C919, whose nacelle is supplied by Nexcelle – a company ofAircelle and GE Aviation's Middle River Aircraft Systems (MRAS). Future opportunities for the new joint venture could include other nacelle-related activity for Nexcelle, as well as its Aircelle and MRAS parent companies.

The types of components identified for possible production by the Aircelle/XAIC joint venture include thrust reverser and doors subassemblies. Assembly opportunities include the build-up of thrust reversers, air inlets and fan cowls.

Signing the contract today at Airshow China 2010 in Zhuhai were Aircelle Chairman and Chief Executive Officer Vincent Mascré, and XAIC Chairman of the Board Wang Xiangyang.

"Aircelle's planned new joint venture with XAIC will open exciting industrial opportunities that begin with the C919, and which could expand in the future with other nacelle activity for Aircelle, its MRAS partner, and Nexcelle," Mascré said. "Additionally, it provides a presence for Aircelle in the very dynamic Chinese market, further expanding our company's global presence."

He added that the joint venture will be an essential element for the C919 nacelle's successful transition from development to production, and is to build on the 30 years of cooperation between AVIC and Aircelle's Safran parent company.

Wang Xiangyang said "The joint venture contributed by XAIC and Aircelle is the first professional commercial aircraft nacelle provider in China, combining Aircelle's advantages in global nacelle field with XAIC's ability of building high quality aviation products. It will fill in the blank in China's nacelle manufacturing industry".

The Aircelle/XAIC joint venture is to be located in the Xi'an Export Processing Zone (XEPZ), which is situated in China's Shaanxi province. More than 40 companies already are operating in the XEPZ, including Chinese and international aircraft engine manufacturers and other high-technology organizations.