SHIJIAZHUANG, China, November 27, 2012 — Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company (through Textron Far East Pte. Ltd.), has entered into a joint venture contract with China Aviation Industry General Aircraft Company Ltd., (CAIGA) (through CAIGA North China Aircraft Industry Co., Ltd.), in accordance with their previously announced strategic agreement, for the formation of a joint venture company to conduct final assembly of Cessna Caravan utility turboprop aircraft in China for the Chinese market. The joint venture contract also contemplates the possibility of designing and assembling new models of utility turboprop aircraft in the future. Formation of the joint venture company remains subject to various government approvals and customary conditions.
Cessna's Wichita, Kansas operations will provide components and parts manufacturing and sub-assemblies for the Caravan aircraft to be sold by the joint venture. Joint venture operations in Shijiazhuang will be designed to conduct final assembly, paint, testing, interior installation, customization, flight testing and delivery of the Cessna Caravan to in-country customers.
"Since its introduction, the Cessna Caravan has proven to be an incredibly reliable aircraft and is particularly well suited for growing global markets," said Scott Ernest, Cessna's president and CEO. "Cessna is pleased to bring the Caravan to customers in China who will benefit from its quality and versatility."
Management of the joint venture will include board members from both Cessna and CAIGA, with the general manager to be nominated by Cessna Aircraft Company and the deputy general manager to be nominated by CAIGA. "Cessna continues to work closely with our partners at CAIGA to bring high quality aircraft to the Chinese market that meets customer expectations for reliability," said William Schultz, Cessna's senior vice president of Business Development, China. "As general aviation continues to grow in China, Cessna is committed to offering the right products to serve the market complemented by the company's unparalleled customer service."
This joint venture contract stems from the strategic framework agreement that Cessna entered into with CAIGA parent company, Aviation Industry Corporation of China (AVIC), in March 2012.
Linked images: Mr. William Schultz, Cessna's senior vice president of Business Development, and Mr. Zhang Shuwei, deputy general manager of CAIGA and Chairman of CAIGA North China Aircraft Industry Co., Ltd. celebrate the joint venture at a signing ceremony today in Shijiazhuang, China.
Cessna is the world's leading general aviation company. Since its inception in 1927, Cessna has designed, produced and delivered more than 193,500 airplanes around the globe. This includes more than 6,300 Citation business jets, making it the largest fleet of business jets in the world. Today, Cessna has two principal lines of business: aircraft sales and aftermarket services. Aircraft sales include Citation business jets, Caravan single-engine utility turboprops, single-engine piston aircraft and lift solutions by CitationAir. Aftermarket services include parts, maintenance, inspection and repair services. In 2011, Cessna delivered 689 aircraft, including 183 Citation business jets, and reported revenues of $2.990 billion. More information about Cessna Aircraft Company is available at cessna.com.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at textron.com.
Certain statements in this press release are forward-looking statements which may project revenues or describe strategies, goals, outlook or other non-historical matters; these statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, the risk that the government approvals and conditions to the joint venture's formation will not be received or will be delayed or that the joint venture's business will not be successful, the risk that Cessna will not reach agreement on the terms of any other joint ventures in China or that the timing of doing so is delayed; risks and uncertainties related to the launching of new products or programs which could result in unanticipated delays or expenses; performance issues with key suppliers, subcontractors or business partners; changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; risks and uncertainties related to establishing new facilities; and risks related to doing business internationally.