A Beijing-based aviation industry investment company reportedly renewed its attempt to acquire stakes in a Ukrainian aircraft engine manufacturer and the application is being reviewed by the Ukrainian antitrust authority, Global Times reported.
The Ukrainian company, which has built engines for the world’s largest transport aircraft the An-225, could help China boost its aeroengine industry if the deal materializes, Chinese analysts said.
Skyrizon, also known as Beijing Tianjiao Aviation Industry Investment Company, is waiting for the result of an assessment by the Antimonopoly Committee of Ukraine, the report said.
The result will be announced after July 22, according to a reorganization note between Skyrizon and Beijing Xinwei Technology Group Co published on the website of the Shanghai Stock Exchange by Xinwei Technology.
Skyrizon and Xinwei Technology are under the control of the same legal representative, according to tianyancha.com, a business inquiry service provider.
The new application was handed to the relevant Ukraine government authority on June 7 and accepted on June 21. Skyrizon would own more than 50% of Motor Sich if the acquisition works, read the note.
China has 13 types and more than 1,200 aircraft engines built by Motor Sich, the note said.
But the US is unhappy about Motor Sich’s dealings with China, saying there might be national security risks from foreign investment transactions, the Washington Post reported in May.
The Ukrainian company lost its Russian clients when relations between the two countries broke down, according to the report.
Established in 1907, Motor Sich is considered one of the largest advanced aircraft engine manufacturers in the world and produces engines including turbofans, turboshafts and turboprops.
China still lags behind the world’s top level in aeroengines, an anonymous military expert told the Global Times.
China could close the gap on the foreign aeroengine industry and boost its domestic aeroengine supply if the acquisition becomes successful, the company note said.