AVIC's US buys to boost global growth

AVIC International, USA Inc, a subsidiary of the Aviation Industry Corp of China (AVIC), is integrating the resources of its US acquisitions to increase its global market presence and boost overall growth.

"Our priority now is to integrate the strengths of the acquired companies with our own advantages so as to achieve solid growth at a faster speed," said Zhang Xuming, president of the US operation of AVIC International.

The acquired companies can fill the holes of AVIC International's own operations and take advantage of the channels of AVIC International, especially in developing countries in Africa and Southeast Asia, he said.

The company's major acquisitions in the US include Align Aerospace Holding Inc, a distributor of aerospace fasteners and other hardware, in April this year, and aircraft maker Cirrus and aircraft engine manufacturer Continental Motors in 2011

The multi-hundred-million-dollar purchase of Align Aerospace, based in Chatsworth, California, is of great significance to China's aviation industry, Zhang said.

Align Aerospace distributed hardware and related components to aerospace original equipment manufacturers (OEMs) and their subcontractors throughout the world.

Among the top five aviation hardware suppliers in the world, Align's clients include such manufacturers as Boeing, Airbus and Bombardier.

With the purchase of Align, AVIC International will be able to integrate the distribution teams in the US, Canada and China's Zhuhai, to help in aviation hardware purchases, stocking and distribution for aviation manufacturing and maintenance industries in China and other countries, said Zhang.

With aerospace as its main business sector, AVIC International is the primary channel for the import and export of commercial aerospace products in China. It has exported more than 1,000 aircraft and imported hundreds of aircraft over the past three decades.

This year, China's home-developed ARJ21 regional jet and C919 passenger airliner are expected to realize customer deliveries and maiden flight respectively.

"The acquisition of Align will certainly help strengthen our performance in aircraft manufacturing and after-sale service," Zhang said.

AVIC International and Greenbriar Equity Group LLC, a private equity firm and Align's principal shareholder, reached an agreement to sell Align to AVIC International Holding (Zhuhai) late last year. The two sides closed the deal after receiving approvals from both the Chinese and US governments early this year.

"It's the right time for AVIC to acquire Align," Zhang had said after the purchase was completed. "AVIC has the need and desire to expand its business globally, and Greenbriar was looking for buyers at a time when the economy recovers (from the 2008 global financial crisis)."

AVIC International Chairman Wu Guangquan said at a ceremony in April in Los Angeles that Align would "bring valuable experience in aerospace supply chain management to AVIC International".

AVIC International has a strong emphasis on supply chain integration and management, and Align sells more than 100,000 SKUs (stock-keeping units), including fasteners and other aerospace hardware, through its distribution centers in the US and France as well as forward stocking locations around the world.

In return, Align's relevance with current customers and global presence, especially in the Chinese market, will be greatly boosted with the investment, resources and relationships of AVIC International, Wu said.

liazhu@chinadailyusa.com

(China Daily USA 07/31/2015 page2)