Hamilton Sundstrand Corporation and AVIC Electromechanical Systems Company Limited (AVIC EM) have finalized plans and entered into a definitive contract to manufacture vapor cycle cooling systems in Nanjing, China. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX), and AVIC EM is a subsidiary of Aviation Industry Corporation of China (AVIC).

The two companies announced a framework agreement for the joint venture at the Zhuhai Air Show in November 2010. The joint venture with AVIC EM's Nanjing Engineering Institute of Aerospace Systems (NEIAS) is a 50/50 strategic partnership to build air management system components for the Chinese and international markets. Plans are in place to begin facility development in September 2011.

"Hamilton Sundstrand is looking forward to launching this exciting new venture with AVIC EM," said Tom Pelland, Hamilton Sundstrand vice president and general manager for Air Management Systems. "We see strong growth in this market segment and we are delighted to partner with AVIC EM to make the new company a success."

AVIC EM designs and produces a wide range of aerospace airborne systems and products for both the Chinese and international markets.

"The establishment of this joint venture in China offers many advantages," said Jiao Yusong, general manager of NEIAS. "We are confident that this partnership will be successful based on the technologies and manufacturing experience that both parties offer."

Hamilton Sundstrand began its presence in the Chinese civil aviation market in 1985 with the development of the Y7-200A aircraft. Today, Hamilton Sundstrand is a key systems supplier on COMAC's 90-seat ARJ21 regional jet and the 150-seat class C919.