Hamilton Sundstrand Corporation, a subsidiary of United Technologies Corp. (NYSE: UTX), and Aviation Industry Corporation of China subsidiary AVIC Engine Holdings, have reached an agreement to form a partnership supporting the launch of a new auxiliary power unit (APU) for the commercial aircraft segment.

Hamilton Sundstrand is launching the design and development of a new generation "common-core" family of APU engines for commercial single-aisle aircraft. As part of the partnership, AVIC will design and develop certain non-hot section components for the APU in support of Hamilton Sundstrand's design and development of the overall APU. The partnership is targeting future APUs for the growing worldwide commercial aircraft needs. In addition, both parties have agreed to collaborate on several other commercial APU programs and aftermarket service opportunities.

"Our new partnership with AVIC Engine Holdings represents Hamilton Sundstrand's long-term commitment to the APU engine business. The partnership will provide the commercial aerospace business with a valuable supply-partner and address the need for increased performance and lower cost advantages for installed auxiliary power," said Danny Di Perna, vice president & general manager of Hamilton Sundstrand's APU Business Unit. "It brings together Hamilton Sundstrand's longstanding commercial APU experience and AVIC's design and manufacturing capabilities, to create an extremely compelling value proposition for our customers."

Mr. Pang Wei, president of AVIC Engine Holdings stated, "This is a good opportunity for both AVIC Engine Holdings and Hamilton Sundstrand to benefit from each other's resources and extend the advantage of both parties to support the worldwide commercial APU industry."

Aviation Industry Corporation of China (AVIC), based in Beijing, is a diversified corporation, centered on aviation, and capable of providing whole-value chain services to customers in many fields. Its subsidiary China Aviation Engine Holdings Corporation Ltd. (AVIC Engine Holdings), headquartered in Beijing, is capable of independently developing, manufacturing and supporting aero-engines, helicopter transmission systems and industrial gas turbines.

Hamilton Sundstrand's APU business unit, based in San Diego, California, currently has more than 13,000 APUs in service.