China AVIC to cooperate with U.S. jet maker

Aviation Industry Corp. of China (AVIC), the country's largest state-owned aircraft producer, said Saturday it would cooperate with the U.S.-based Cessna Aircraft Co. in producing business jets.

The AVIC signed a framework agreement with Cessna's owner Textron Inc. on Friday, stating that the two sides and the municipal government of Chengdu in southwest China will create a joint venture to produce business jets in Chengdu.

During the initial stage of the cooperation, the joint venture will build existing Cessna aircraft models including Citation Sovereign and Citation Latitude, and will develop new business jet models that meet the increasing market demands.

The three parties will strive to have the joint venture established before the end of this year, according to the agreement.