The move follows the agreement of terms and signing of a contract between joint venture partners Dunlop Aircraft Tyres (63%), Hong Kong Aircraft Engineering Co. Ltd. (HAECO) (28%) and Taikoo (Xiamen) Aircraft Engineering Co. Ltd. (TAECO) (9%).
Birmingham, U.K.-based Dunlop Aircraft Tyres will be the majority partner at the new facility in Jinjiang, Fujian Province. It is due be operational early next year as Dunlop Taikoo (Jinjiang) Aircraft Tyres Ltd.
“This facility will significantly increase our competitiveness in the global aerospace market,” said Dunlop Aircraft Tyres chairman Ian Edmondson. “Airlines are expanding rapidly within the Asia Pacific region, both in their size and numbers. This pace of expansion has encouraged aircraft manufacturers to increase their forecasts of jet airliner deliveries and we are delighted to be able to access a $100 million market that is demonstrating double-digit annual growth.
“By partnering with Haeco, one of the world’s leading aircraft engineering companies and Taeco, its subsidiary in mainland China, we will be able to accelerate our entry into the marketplace and offer a compelling range of products and services to the region’s airlines.”
P.K. Chan, deputy chairman and CEO of HAECO and chairman of TAECO, added: “Tyre retreading will enhance the service we provide to current and future airline customers in the Asia Pacific region and we are delighted to be introducing this in partnership with Dunlop Aircraft Tyres, a world leader in its field.”
AAC Capital Partners, formerly the private equity business of ABN Amro, acquired 74.6% ownership of Dunlop Aircraft Tyres in May 2007. (Tyres & Accessories/Staffordshire, U.K.)
