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AVIC II Buys Stake in Shanghai Sikorsky

SHANGHAI, China --- AVIC II, through its subsidiaries Changhe Aircraft Industries Corporation and Shanghai Xinsheng Aviation Industry Investment and Development Company, today announced it is joining Shanghai Sikorsky as a shareholder. Shanghai Sikorsky is a civil aerospace joint venture company whose other shareholders are Sikorsky Aircraft Corp. and Shanghai Little Eagle. Sikorsky Aircraft is a subsidiary of United Technologies Corp.

Shanghai Sikorsky, established in 2003 by Sikorsky and Shanghai Little Eagle, focuses on nurturing the Chinese civil helicopter market and serving its growing vertical lift needs. The venture's business includes civil helicopter sales and support, including services and training, and general aviation services. With Changhe and Xinsheng becoming shareholders, Shanghai Sikorsky will soon expand its business to provide supply chain management services and to serve both Sikorsky's and Changhe's civil fleet in China.

Sikorsky's business relationship with AVIC II dates back more than a decade to the development and production of the S-92 helicopter. In June 2006, Sikorsky and AVIC II furthered their business relationship and announced a Memorandum of Understanding (MOU) for collaboration on development and manufacture of civil helicopters. In October 2006, Schweizer signed an agreement for S-300 helicopter subcontract production with Changhe, and in July 2007 Sikorsky announced an S-76 helicopter airframe production collaboration with Changhe.

"Our increasing partnership with AVIC II demonstrates Sikorsky's commitment to, and confidence in, our partners and the Chinese aviation market. Shanghai Sikorsky, leveraging the support of Changhe, Xinsheng, Little Eagle and Sikorsky, lays the foundation for Chinese market expansion," said Carey Bond, Sikorsky vice president for corporate strategy.

Schweizer S-300 helicopters are used worldwide for training, transportation, power-line patrol and many other missions. Both the Sikorsky S-76 and S-92 helicopters are market leaders in their weight classes in offshore oil, head of state, VIP, search and rescue, and commercial transportation.

"Demand for S-300, S-76 and S-92 helicopters remains strong. This latest teaming with AVIC II will enable us to offer premier helicopter support and services in China to better meet customer requirements and provide additional customer value," said Bond.

Sikorsky Aircraft Corporation, based in Stratford, Connecticut, USA, is a world leader in helicopter design, manufacturing and service. United Technologies Corp., based in Hartford, Connecticut, USA, provides a broad range of high technology products and support services to the aerospace and building systems industries.

AVIC II Joins Shanghai Sikorsky