China nears approval of $16 billion domestic jet-engine plan: Xinhua

cir

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Reuters – 6 hours ago

SHANGHAI (Reuters) - China's cabinet may soon approve an aircraft engine development program that will require investment of at least 100 billion yuan ($16 billion), state-run Xinhua news agency quoted unidentified industry sources as saying.

China is determined to reduce its dependency on foreign companies like Boeing Co (BA), EADS-owned Airbus (EAD.PA), General Electric Co (GE) and Rolls Royce Plc (RR.TO) for the country's soaring demand for planes and engines.

So far the domestic aerospace industry has failed to build a reliable, high-performance jet engine to end its dependence on Russian and Western makers for equipping its military and commercial aircraft.

Xinhua on Thursday quoted an unidentified professor at the Beijing University of Aeronautics and Astronautics (BUAA) with knowledge of the project as saying the investment would be used mainly for research on technology, designs and materials related to aircraft engine manufacturing.

The project was going through approval procedures in the State Council and may be approved shortly, the professor was quoted as saying.

Participants in the project include Shenyang Liming Aero-Engine Group Corp, AVIC Xi'an Aero-Engine (Group) Ltd <600893.SS> and research institutes including the BUAA, Xinhua reported.

Aviation Industry Corporation of China (AVIC), the country's dominant military and commercial aviation contractor, had lobbied the government to back a multi-billion dollar plan to build a high-performance jet engine.

China's military and aerospace industries have suffered from bans on the sale of military equipment imposed by Western governments after the Tiananmen Square crackdown and foreign engine-makers are reluctant to transfer costly technology.

Some Chinese aviation industry specialists forecast Beijing will eventually spend up to 300 billion yuan ($49 billion) on jet-engine development over the next two decades.

($1 = 6.2273 Chinese yuan)

http://finance.yahoo.com/news/china...Q2BHBzdGNhdANuZXdzBHB0A3N0b3J5cGFnZQ--;_ylv=3
 

cir

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

It is high time for India to follow suit,otherwise the country will be forever relying on imported technologies and spending its very limited foreign reserves on a few costly engines。
 

Daredevil

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Does it imply that the China's WS-XX engines have failed to perform?.
 

Armand2REP

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

If it takes two decades just to develop 30yr old obsolete engines, what is the point? China will always be behind the curve until their researchers and SOEs stop being xerox robots.
 

J20!

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Does it imply that the China's WS-XX engines have failed to perform?.
*nodding slowly* Yes, they've failed miserably.

That's why their investing 16 BILLION DOLLARS more into them. that's more or less what India is paying for the entire MMRCA deal. Would you invest an equivalent amount to your country's biggest defense deal into engines that have failed?

And the 16 billion doesn't just cover R&D, it covers the industrial development of manufacturing plants and testing centers to improve on the current technology base, and the establishing of various materials labs for the large scale testing and production of new age materials necessary to supply the huge Chinese civilian and military jet engine market.

You seem to forget that moving a prototype from the development stage to full scale production with multiple factories pumping units out costs huge investments in the necessary supply chain from raw materials to high end services and production.

These investments might just mean that some of China's over 10 individual engine programmes across some of China's largest defence contractors and development institutes are ready for full scale production.
 

Daredevil

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

India at this moment doesn't have the wherewithal to spend $16 billion on Engine development. India might achieve the same for much less because of Joint Ventures with known Engine manufacturers, so it can cut down the effort & money on re-inventing the wheel and reverse-engineering. In that sense, India is at an enviable position compared to China.
 

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

16 Bil indicates all the WS-XXX have failed miserably and new research is being initiated. Of course ideas and lessons learnt from WS series will be implemented into the new project. Good luck to them.
 

LordOfTheUnderworlds

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

India at this moment doesn't have the wherewithal to spend $16 billion on Engine development. India might achieve the same for much less because of Joint Ventures with known Engine manufacturers, so it can cut down the effort & money on re-inventing the wheel and reverse-engineering. In that sense, India is at an enviable position compared to China.
only if India is able use the opportunity.
 

t_co

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

16 billion isn't enough; GE, Pratt & Whitney, and Rolls Royce put 4 billion a year into jet engine R&D. 50 billion over the next decade is more like it.
 

badguy2000

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

well, China didn't pay attention to engine R&D until 1990s.

And because of poor economy, engine R&D didn't receive decent investment until 2000....

r&d of engine costs huge money and time......
what USA have spent on engine R&D is by far more than 16 billion USD...

if CHina wants to catch up with USA ,16 blillion USD would be just wallet changes...
 

badguy2000

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

and thick wallet is the base of R&D..

Withou powerful economy, one country can not support the sustained R&D of engine.....
 

satish007

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

If it takes two decades just to develop 30yr old obsolete engines, what is the point? China will always be behind the curve until their researchers and SOEs stop being xerox robots.
a smart Frenchman will not mock his customer before $16billion.
 

cir

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Americans are investing billions in their engine technology.

Does it mean that their engine programmes like the F-135 failed?

Little minds can never ever think clearly.
 

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Americans are investing billions in their engine technology.

Does it mean that their engine programmes like the F-135 failed?

Little minds can never ever think clearly.
Money alone doesn't create success.

Chinese are investing billions in their branding campaigns. Does that mean China has built good consumer brands?

Little minds never ever think clearly. :rolleyes:
 

satish007

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Money alone doesn't create success.

Chinese are investing billions in their branding campaigns. Does that mean China has built good consumer brands?

Little minds never ever think clearly. :rolleyes:
y, agree, so we spend and hopefully you guys support and we grantee only use engine in china market. American will not help but France always are our and money side.
 

Ray

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Developing engines is the biggest problem of manufacturing aircraft.

Ideally, as has been noted of China, they are masters at copying and why not?

Does it mean that the funds cover 'inquiries' into foreign manufactures of jet engines?
 

p2prada

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

That's why their investing 16 BILLION DOLLARS more into them. that's more or less what India is paying for the entire MMRCA deal. Would you invest an equivalent amount to your country's biggest defense deal into engines that have failed?
Let's not make it an India vs China thread again.

Even India will be spending quite a bit if you add all our engine program costs.
 

J20!

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Let's not make it an India vs China thread again.

Even India will be spending quite a bit if you add all our engine program costs.
It's not an attempt at an India vs China jibe, I'm just trying to portray how ridiculous the assumption that a warping 16 billion dollar investment in jet engine programmes and the jet engine industry at large signifies failed programmes.

Calculate in your head how many times the development budget of the K10, the largest defense jet engine development deal in India, goes into 16 Billion, then tell me how ridiculous it'd be to invest that sum of money into "failed" jet engine programmes.

Why would any sane government invest 16 Billion dollars into failed engine programmes giving no returns?
 

nrj

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Re: China nears approval of $16 billion domestic jet-engine plan: Xinh

Good move by China.

It takes balls and undeterred commitment to approve this large money & announce it in public domain. I don't know if WS engines have failed or are not upto performance requirements. What I do know is you succeed only if you keep trying regardless of failures. Russians should be worried, their promised bread is in danger.
 

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