C919 big aircraft suppliers compete for the billion-dollar market

Abstract [According to the statistics of the First Financial Reporter, since November last year, the C919 large aircraft has received a total of 570 orders from 23 users worldwide. ] Bao Titan Co., Ltd. 600456.SH), Guihang Co., Ltd. (600523.SH), AVIC Aircraft (000...
[According to the statistics of the First Financial Reporter, since November last year, the C919 large aircraft has received 570 orders from 23 users worldwide. ]
The large aircraft concept stocks such as Baoti Co., Ltd. 600456.SH), Guihang (600523.SH) and AVIC (000768.SZ) suddenly rose collectively on the morning of the 3rd, and Boyun New Materials (002297.SZ) It is a strong daily limit, and the fuses behind it are all derived from a notice related to large domestic aircraft: C919 plans to fly at Shanghai Pudong Airport on the 5th, if the weather conditions are not available, it will be postponed.
From design and development to final assembly, the first flight has been achieved. China Commercial Aircraft Corporation has spent 9 years. This large aircraft also has a complete industrial chain of aircraft manufacturing at home and abroad - more than 200 companies and 36 universities. Hundreds of thousands of industrial personnel participated in research and development, and 70 companies became suppliers or potential suppliers of C919, including central enterprises such as AVIC and Baosteel, private enterprises focusing on equipment manufacturing, and GE. International giants such as Honeywell. Among them, the main part of the C919 is mostly made in China, while the engine and avionics system incorporates foreign technology.
The first flight of the C919 big plane caught the attention and was not unrelated to its huge market potential. According to the statistics of the First Financial Reporter, the C919 has not yet made its first flight, and has already received 570 orders from 23 users worldwide. "We hope that in the next 10 to 20 years, the C919 aircraft will occupy a third of the Chinese market." Wu Guanghui, chief designer of COMAC C919, told the First Financial Reporter.
According to multi-party forecasts, the Chinese market will receive more than 5,500 new machines in the next 20 years, with a total value of more than 670 billion US dollars (equivalent to about 4.6 trillion yuan). In other words, the C919 will have a certain share in the future of hundreds of billions of dollars in China.

The main part of China made: AVIC takes the heavy burden
Due to the implementation of the “main manufacturer-supplier” development model, 16 material manufacturers including Baosteel and 54 standard parts manufacturers are suppliers or potential suppliers of C919. COMAC also selected GE and Honey. 16 multinational companies such as Vail and CFM (French-American joint-venture aircraft engine manufacturer) serve as airborne system suppliers for passenger aircraft. The main methods of participation are to establish airborne, flight control, power, fuel and landing gears with the Chinese side. The system's 16 joint ventures.
AVIC Group undertook the main manufacturing tasks of the large parts of the C919 aircraft. The C919 first aircraft head, front fuselage, middle fuselage, central wing, mid-rear fuselage and other nine sections were all under the jurisdiction of AVIC. It is manufactured by domestic aviation industry enterprises such as Xifei, Chengfei Civil Aircraft, Shenfei Civil Aircraft and Hongdu Aviation (20.210, -0.80, -3.81%) under the aircraft.
For example, the nose is manufactured by Chengfei Company, the front fuselage and the mid-rear fuselage are manufactured by Hongdu Group, the wing is manufactured by Xifei Company, and the rear fuselage and tail are manufactured by Shenfei Company. Manufactured by Hafei, Hafei also undertakes the manufacture of composite parts for the fuselage, including the main landing gear door work bag, the nose landing gear door work bag, the wing body fairing work bag and the vertical tail work package.
Among these major suppliers, Xifei, Shenfei and Chengfei are all subsidiaries of AVIC Aircraft. The previous main income of AVIC aircraft came from military aircraft manufacturing, followed by subcontract production from aircraft manufacturers such as Boeing and Airbus. The revenue of civil aircraft business is small, mainly due to the new boat 60 aircraft at home and abroad. The contribution of customer delivery.
In addition, the Aerospace Special Materials and Process Technology Institute (306) and several private enterprises are among the top nine chassis manufacturers of C919 domestic large passenger aircraft.
For example, the RAT hatch (emergency generator hatch) is provided by a private company called “Xizi”, a comprehensive enterprise group mainly engaged in equipment manufacturing and cross-industry operation, and a private enterprise producing auto lamps in Jiangsu. Ming Company has become one of the few private companies to be selected as major suppliers of large domestic aircraft.
Xizi United Holdings Co., Ltd. (hereinafter referred to as “Xizi United”) is a comprehensive enterprise group mainly engaged in equipment manufacturing and cross-industry operation. Its industries cover elevators, elevator components, three-dimensional parking garages, cranes, steel structures, boilers, and aviation. , business, real estate, financial investment and other fields. On the 3rd daily limit, Boyun New Materials provided the brake system for the C919 aircraft.
Xizi and a person told the First Financial Reporter that the company became the only private enterprise among the first-class structural suppliers of the C919 large aircraft project in 2009. At present, Xizi Aviation has three companies including Zhejiang Xizi Airlines, Shenyang Xizi Airlines and Zhejiang Xizi Aviation Fasteners.
Among them, Zhejiang Xizi Airlines not only supplies APU door (auxiliary power unit door) and RAT door of China Commercial Aircraft C919 project, but also supplies parts for Bombardier Aerospace Q400 aircraft, and supplies CNC machine parts for US PMA B777, B787 and A330 aircraft. .
Yuming Company is a joint venture between Jiangsu Private Enterprise Yuming Auto Lamp Co., Ltd. and British Zhonghui Investment Group. It is controlled by Yuming Auto Lamp Co., Ltd., and previously produced “Zhangming” brand high-end auto lamps and “Wenyu” brand. The interior and exterior parts of the car mainly cover the series of cars, big passengers, pickup trucks, SUVs, heavy trucks and light trucks. The main supporting automobile manufacturers include FAW, Zhengzhou Nissan, Chery and Changhe.

The core system has foreign aid: foreign technology uses technology for market
Zhou Jisheng, former deputy chief designer of the ARJ21 project, told the First Financial Reporter that the general body parts accounted for about 40% of the cost of the entire aircraft, while the engine and avionics systems were the two core systems of the aircraft. The value of the two systems also accounts for about 40% of the aircraft's cost, and both core systems currently have GE participation.
As early as 2011, GE formed an aeronautical system joint venture with AVIC. It was also GE's first time to establish a flat company with Chinese companies in the core area of ​​aerospace manufacturing, and will integrate its civil avionics business. Joint venture. Most foreign avionics companies are reluctant to give up their controlling interest in joint ventures with China because of concerns about core technology and commercial interests.
Before the joint venture company officially signed the contract, the two companies have jointly acted and obtained orders for some of the avionics systems of the domestically produced large aircraft C919. In addition, GE and France's Safran Group each hold 50% of CFM International Ltd., also selected as the engine supplier of the C919 aircraft.
In addition to GE, Honeywell Aerospace Group has also established Honeywell Boyun Airlines (Hunan) Co., Ltd. with Boyun New Materials to provide wheel and brake systems for the C919 large aircraft project.
Honeywell will also supply components for the four systems in the C919 project, including fly-by-wire controls, auxiliary power units, wheel brakes, and inertial reference systems for precise position data. The first three systems require Honeywell to establish a joint venture with China to conduct R&D, production or integration. The Chinese companies that cooperate with it are AVIC Flight Automatic Control Research Institute, Harbin Dongan Engine Company and Boyun New Materials.
In addition, Shanghai Pudong New Area also has a company that manufactures “vascular system” for large aircraft – Eaton Shangfei (Shanghai) Aviation Pipeline Manufacturing Co., Ltd., the first joint venture company of COMAC, developed by COMAC. Shanghai Aircraft Manufacturing Co., Ltd. and Eaton (China) Investment Co., Ltd., a subsidiary of Eaton Corporation of the United States, jointly invested and established.

Fight for the billion-dollar market
The reason why domestic and foreign suppliers are eager for the C919 aircraft is not unrelated to the huge market opportunities.
According to multi-party market forecasts, in the next 20 years, only the Chinese market will receive more than 5,500 new machines, with a total value of more than 670 billion US dollars. At present, the domestic airlines operating in the domestic market are mainly provided by Airbus and Boeing, and most of them are the narrow-body machines of the same class as the C919, such as the A320 and B737 series.
“The focus of competition among several aircraft manufacturers in the future is undoubtedly the Chinese market.” Wu Guanghui told the First Financial Reporter, “We hope that in the next 10 to 20 years, the C919 aircraft can occupy one-third of the Chinese market. Share."
At the Zhuhai Air Show in November last year, China Eastern Airlines and China Commercial Aircraft signed a cooperation agreement to become the world's first user of the C919. In addition, CITIC Finance signed 36 orders, of which 18 orders were confirmed and 18 orders were intended; Puyin leased 20 contracts, of which 5 confirmed orders and 15 intention orders. At this point, the C919 large aircraft has received 570 orders from 23 users worldwide.
However, the first flight of the C919 was not a commercial operation of the passengers, but a step required for evidence collection. Jiang Liping, chief engineer of the Shanghai Aircraft Manufacturing Plant, which is responsible for the final assembly work of China Commercial Aircraft, told the First Financial Reporter that mass production will begin after the domestic large aircraft is obtained. It is hoped that 20 aircraft will be produced each year in the previous period, and then 50 aircraft will be available in 2020. Annual production capacity of the C919 large passenger aircraft and 50 ARJ21-700 aircraft.
Just as the C919 stepped up its sprint, the larger wide-body aircraft project was already brewing. According to the First Financial Reporter, China Commercial Aircraft Corporation has signed a joint venture contract with UAC (Russian United Aviation Manufacturing Group). The Chinese and Russian companies will carry out research and development work in accordance with the principle of reciprocity, and form a joint venture company in Shanghai as the main body of project implementation. . The final assembly of the aircraft will be completed in Shanghai.
Compared with more than 100 C919 passenger planes, the Sino-Russian long-range wide-body aircraft adopts a dual-channel cabin layout with a basic range of 12,000 km and a seat class of 280. This model is also known as the “C929” passenger aircraft. According to the development experience, it takes about 7 years from the start of the project to the first flight, and it takes about 10 years to achieve product delivery.
“The investment in the development of civil aircraft is considerable, the recovery is slow, and the risk is huge. The recovery period of a new model will be 20 or 30 years.” Wu Xingshi, a member of the National Large Aircraft Special Experts Demonstration Committee and the original chief designer of the ARJ21-700 aircraft, told The first financial reporter, there is still a gap between China’s aircraft manufacturing and the technological level of developed countries. Civil aircraft is still on the road to catch up. “The biggest challenge is not money and people, but practice.”

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