BRITISH-BASED Lucas Aerospace and the Taikoo (Xiamen) Aircraft Engineering Co (TAECO) have signed a US$10 million deal to set up a repair and overhaul facility in Xiamen in Fujian province.
The facility - which will service engine and flight control systems, electrical power generation and other aerospace equipment - will be 65 per cent owned by Lucas and 35 per cent by TAECO.
Construction of the facility is expected to be completed early in 1996.
TAECO, itself a $63 million joint venture between Hong Kong Aircraft Engineering Co and several leading Asian airlines and Chinese parties, is building two double-bay, wide-body hangars in Xiamen.
Construction is underway and the facility is expected to become operational in the last quarter of next year.
Lucas Aerospace, part of Lucas Industries, provides high-integrity control systems for the aerospace industry, with core businesses in flight control systems, engine control systems and electrical power generation and management.