BaoSteel and Chalco to join China

Reuters reported that major state owned Chinese firms, including the parent group of Aluminum Corp of China Ltd will invest in a government led project to develop large passenger and cargo jets.

A source familiar with the situation said Aluminum Corp of China the world's fourth largest aluminum producer plans to invest CNY 1 billion in the project, getting a 5% stake. The source said the parent companies of China's top steel mill Baoshan Iron & Steel and state oil trader Sinochem International will also each take a 5% stake.

The source added that the total cost and further details of the shareholding structure of the project will be unveiled after a board meeting scheduled later this month.

The report added that China's two state owned aircraft makers, AVIC I and AVIC II as well as the government of Shanghai where the jets will be assembled and will also help to bankroll the program. AVIC I and AVIC II both supply components for Airbus's and Boeing's latest models, including the double-decker A380 jumbo jet and the 787 Dreamliner. AVIC II unit Hafei Aviation Industry Co also makes the ERJ-145 regional aircraft in partnership with Brazil's Embraer.

(Editor : jane)