Chinese plane maker Xi'an Aircraft Industry Company (XAC) has purchased a majority stake in Austrian aircraft parts maker Future Advanced Composite Components (FACC).
XAC and Hong Kong-based private equity firm Advanced Treasure Limited acquired a 91.25 per cent stake in the Ried im Innkreis-based company.
XAC, a subsidiary of state-owned Aviation Industry Corporation of China, holds 90 per cent of the combined stake and ATL holds 10 per cent.
The stake is believed to be worth Ôé¼100 million.
A signing ceremony was held on Thursday in AustriaÔÇÖs capital, Vienna.
According to China's state-run Xinhua news agency, this is the first time that a European aerospace manufacturing company has been acquired by an Asian aerospace manufacturing company.
It is also the largest acquisition finalised by Chinese enterprises in central Europe.
The acquisition forms part of XACÔÇÖs strategy to increase its presence in international markets. At the same time, it will give FACC access to the fast-growing markets of China and Asia-Pacific.
Walter Stephan, CEO of FACC, said in a statement: "In the past years, FACC has achieved impressive development. XAC will strengthen our position as an internationally successful development and systems supplier to the OEMs and first tiers in the aviation industry.
ÔÇ£This is an unique opportunity to step up the growth path, supported by the new owner. XAC has a long-term strategic interest in the aviation industry, has excellent contacts in the growth market of China and long-term commitment to FACC and its customers. "
The Chinese group plans to inject around Ôé¼40 million into FACC, whose customers include Airbus, Bombardier and Boeing, to improve its capital reserves.
Established in 1989, FACC is the largest component maker in Austria, manufacturing composite components and systems for civil aircraft. The company recorded earnings of Ôé¼277 million for the fiscal year 2008 to 2009.
XAC is one of the main component suppliers for the C919, China's first domestically-produced jumbo jet. It is also has a close relationship with Boeing.
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