AVIC announces further streamlining

The Aviation Industry Corporation of China (AVIC) has announced further restructuring as part of ongoing efforts to streamline its business and concentrate on its core capabilities.

The state-owned defence-aerospace group announced on 15 June that it has agreed to transfer its AVIC Resources business to the Chinese government's largest investment holding company, the State Development and Investment Corporation (SDIC).

AVIC, manufacturer of Chinese military aircraft including the J-20 fighter (pictured), has announced the sale of additional non-core activities in line with its business optimisation reforms. (PLAAF)

AVIC Resources operates as a subsidiary of AVIC International and, according to the group, is focused on the “investment and development of agriculture-related resources business” including minerals and mining. AVIC said the subsidiary will be integrated into a similar business operated by SDIC.

AVIC said the transfer of AVIC Resources would be “free of charge”. It added that the deal is aligned with its aim to “deepen reforms, focus on its main business, and enhance its industrial competitiveness”.

In recent years AVIC has similarly withdrawn from other businesses deemed non-core including shipbuilding and automotive manufacturing.

In 2020 AVIC's revenue and profits were CNY468.5 billion (USD72.3 billion) and CNY15.6 billion, representing year-on-year increases of 1.5% and 16% respectively. The value of its assets was about USD145 billion.