In April 2008, China Civil Aviation Science &Technology Industrialization Base — AviationIndustrial Park went into construction in TianjinAirport Industrial Park. An aviation industrialchain is taking the form in Tianjin with AirbusA320 Aircraft General Assembly Line Projectleading the way.

The first-phase construction of the AviationIndustrial Park will build a 40,000-square-meterR&D center and a 100,000-square-meter factory,including civil aviation product designcenter, technical center, engineering center,support center, test pilot approval center,technical authorization center, training center,aeronautical technology exhibition center anda comprehensive research institute.

On October 16, 2005, Civil Aviation Administrationof China, together with Tianjin MunicipalGovernment, signed Cooperative Agreementon the Establishment of Civil Aviation Science& Technology Industrialization Base, confirmingthe set up of civil aviation science & technologyindustrialization base in Tianjin AirportIndustrial Park in the Binhai New Area.

The base covers an area of 11 square kilometers.It is based on excellent investmentenvironment, preferential investment policy,convenient transportation system, abundantresources in civil aviation science & educationand high-efficiency service system, which enablesthe base to become the best location forthe development of civil aviation industry andairport economy.

At the moment, the Airbus A320 General AssemblyLine Project has settled in the base. It isexpected that the first aircraft will be deliveredin 2009. After 2011, four aircrafts will be builtevery month.

Both parties state that the purpose of baseconstruction is to promote the developmentof civil aviation science & technology industryin China, strengthen global competitiveness ofcivil aviation of China and maintain the transformationfrom “big power of civil aviation” to“great power of civil aviation”. What’s more,Tianjin should be built into a high-level baseof modern manufacturing, R&D and technologycommercialization so as to accelerate theopening up of the Binhai New Area.

China Civil Aviation Science & Technology IndustrializationBase is the only one of this kindin China. At present, first-phase constructionof Aviation Industrial Park has kicked off.

The base has begun to see its accumulative effectsincreasing: Introduction of aircraft repair& modification project by Memphis Group Inc(US), Lifesaving equipment production agreementwith Thornton (US). China Aviation SuppliesImport & Export Group brings in projectsconcerning aircraft leasing, composite material,aerospace coating, aviation spare parts allocationand manufacturing of seats.

In addition, more than 30 enterprises haveshown interests in investing or signing contract.Among them are Honeywell (US), nacelles byGoodrich Corporation (US), PPG AerospaceCoating, engine repair by Saifeng, THALES(France) and EBS (Canada).

The person in charge of the project indicatesthat China Civil Aviation Science & TechnologyIndustrialization Base will be market-oriented.It will help create a first-class platform for civilaviation science & technology innovation andindustrialization and achieve scale operationgradually. In the end, the base will grow into ahigh-tech industrial park with intensive industryclusters and complete industrial chain.