Visitors line up to enter a full-scale model of the Comac (Commercial Aircraft Corp of China) C919 at Airshow China 2010 in Zhuhai, Guangdong province. Parker Hannifin will be developing hydraulic, fuel and flight control systems for the aircraft. [Photo/China Daily]

Flight control technologies firm focuses on expansion in Asia-Pacific

SHANGHAI - Parker Hannifin, a global leader in motion and control technologies, unveiled an investment plan for China valued at more than $100 million.

The plan will be implemented over the next five years as part of the company's strategic expansion in the Asia-Pacific market.

Property measures inspection launched Related readings:  China's jumbo jet first order by year end  Aerospace firm wins C919 deal  Chinese jumbo jet looks globally for engines  China to complete design of jumbo jet by year end

The funds will be used to enlarge manufacturing and engineering capabilities at Parker Hannifin's existing Chinese factories, said Michael Chung, president of Parker Hannifin Asia-Pacific Group.

The focus will be on facilities in Shanghai, and Jiangsu and Zhejiang provinces, with some funds being spent on research and development as the company hires more than 300 engineers, Chung said.

He added that the figure excludes funds for an expected joint venture with the Aviation Industry Corporation of China (AVIC) to support the C919 large aircraft program.

Parker Hannifin's aerospace unit has signed an agreement with AVIC to develop hydraulic, fuel and flight control systems for the C919.

"Details are under negotiation and locations for the venture are under discussion, but the exact timetable of when the venture will be established is unavailable at the moment," he said.

Insiders said the C919, the first large commercial jetliner developed by the Commercial Aircraft Corporation of China Ltd, is expected to make its maiden flight in 2014.

"China is the most important of our three key markets in the global business, the others being Brazil and India," Chung said.

His words were echoed by Steven Ong, country managing director of Parker Hannifin China, who said the company expects strong growth in volume and capacity through strategic domestic investments.

Ong said the investments will help to increase current annual sales of $600 million in China, which accounts for 5 percent of its global sales, to $1 billion by 2015.

"We will focus on developing industries in engineering machinery, high-speed railway parts, and energy and environment facilities," he said.

Ong said Chinese demand for these parts is strong, since the country is launching so many infrastructure projects, including high-speed railways, power generation, and pollution-reducing equipment.

"Our commitment is to bring leading process technologies and engineering knowledge to the country, expand the scale of localized production, and gain better capability to provide engineered solutions to Chinese customers," he said.

Chung said Parker, which has been involved in building the Beijing-Shanghai high-speed railway, attaches great importance to cooperating with the Chinese government.

"We will cooperate with China South Railway and China North Railway to provide our latest technologies and solutions, which have been tested on high-speed trains in Europe," he said.

"Facing such a great market, Parker will continue its investment because its growth in China will provide firm support for our business expansion in Asia and the rest of the world."