CODE 18-77
Reference
CONFIDENTIAL
COMMERCIAL IN CONFIDENCE
the Swire Group is likely to be the biggest private sector investor, presently estimated at some £1bn.
China
4. Rolls-Royce have agreed that they should look to establish a more substantive cooperation agreement with the Chinese Ministry of Aerospace. The plan is to set up some form of joint venture agreement for manufacture and design of components and some sub- systems. Rolls would transfer manufacturing technology using MOA as a sub-contractor for some engines business. The exact structure of the joint venture has yet to be worked out but Rolls are determined to ensure that the amount they give the Chinese in the way of technology transfer is matched by corresponding payback in terms of business for Rolls on the mainland.
5.
China Southern Airlines (CSA) are a potential customer for Rolls engines. Unfortunately they have just decided to equip their six new Boeing 777s with GE engines.
6. Air China are also evaluating Boeing 777s. Rolls made presentations on the Trent engine in November 1992 but the decision by CSA is worrying.
7. Fokker are considering co-production of the F100 in China. If this goes ahead Rolls will co-produce the Tay engine for it there.
Yunnan Provincial Airlines have been offered B737s and B757s by Boeing. Rolls have visited to promote the RB211-535.
8.
9. Rolls are committed to the China market which they consider to be the natural centre for the aviation industry in the Pacific region. It is not possible in the time available, to quantify the value of this potential business.
Plambert.
вил
PETER LAMBERT
3AIRTK.171
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