Shanghai has unveiled a raft of fresh policies, including engine research and development support and allowances of up to 100 million yuan (US$13.8 million), to help expand the production capacity of China’s home-grown C919 narrowbody passenger jet.
The policies released last week would “greatly improve” production capacity within two years, with Shanghai also set to invest heavily in local industrial chains.
The document released on the municipal government’s website, though, did not provide a target.
However, an earlier state media report indicated that the Commercial Aircraft Corporation of China (Comac), after setting up a second assembly line at its Shanghai factory, was speeding up its expansion after three major state-owned airlines placed 100 orders each since April.
Shanghai also vowed in the document to form a world-leading industrial chain comprising 60 key enterprises by the end of 2026, with investment exceeding 70 billion yuan (US$9.7 billion).
The scale of the aircraft industry would reach 80 billion yuan by 2026, it added.
According to the Shanghai party newspaper, the Jiefang Daily, Shanghai’s aircraft-related industrial output hit 30 billion yuan last year.
As China plays catch up with the United States and Europe to develop, produce and sell passenger jets, Shanghai is playing a key part.
The city, which is home to the state-owned Comac, is on the cusp of ushering in a boom in aircraft manufacturing and development.
More aircraft are rolling out of Comac’s plant near Shanghai’s Pudong International Airport following the orders from China’s three major state-owned airlines.
And following the first year of commercial operation with the Shanghai-based China Eastern Airlines, the Shanghai plant is set to deliver the first C919 to China Southern in August, with plans to also promote the jet overseas.
Comac is also leading a nationwide endeavour to design new models, including the C929 and C939 widebody aircraft, as well as certification for more parts and components.
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China’s home-grown passenger jet C919 celebrates first anniversary of maiden flight
China’s home-grown passenger jet C919 celebrates first anniversary of maiden flight
“Shanghai must fulfil its role as a nexus for China’s modern commercial aircraft production and development,” said Fu Weigang, executive president of the Shanghai Institute of Finance and Law think tank.
“As the host city, it must do all the groundwork, from support for the planemaker to forming a complete and vibrant ecosystem of industrial chains and suppliers.”
Vowing that Shanghai would step up collaboration with state-owned enterprises, Shanghai’s document also stressed leveraging and solidifying advantages since major industrial chains and key enterprises are already clustered in the city.
For key components including engines and avionics, the city would make an effort to promote R&D, manufacturing and system integration of raw materials, core parts and subsystems to support the mass production of key engine parts.
Other measures include encouraging airlines to buy home-made jets, helping enterprises along industry chains to place orders and form partnerships, cash support of up to 100 million yuan for R&D and certification, as well as a “big plane” industrial park near Comac’s plant and Pudong airport to pool suppliers.
Local authorities would also encourage state firms and local entities to form aircraft industry investment funds.
They also pledged personnel and funding support to enhance Shanghai’s certification capabilities for aircraft types and key parts.
