US Primus International, a manufacturer of high precision aircraft structural parts, inaugurated its new division in Suzhou's industrial park on Friday.
The US$10 million Jiangsu Province facility is the company's first manufacturing base outside the United States and takes Prmius' total number of divisions to three.
The two other divisions are both based in Seattle in the US.
"Setting up the new facility is part of Primus' strategy to seek a share in China's aerospace industry," said Jim Hoover, president and chief executive officer of Primus International.
The new factory will manufacture engine mounts, landing gear, airframe components, controls and passenger and cargo doors using raw materials imported from the United States.
"Our China factory will open new markets for Primus," said Hoover.
Primus parts manufactured in Suzhou are supplied to both Boeing and Airbus, for use in the American company's 737 and 777 aircraft and the European conglomerate's A330 and A340.
You Li, manufacturing director of Primus International (Suzhou) Ltd, said this year the factory will be equipped with 15 digitally-controlled machine tools imported from the US and Japan to increase production capability.
Annual revenue is expected to reach US$1 million this year. Primus is considering expanding its production and launching second and third phases of development over the next few years.
"The target is to reach an annual revenue of US$30 million in 2009 by putting in further investment," said Hoover.
At the moment, he said, it is hard to calculate how much should be spent and no exact figures are available. He told China Daily that Primus will double the size of the Suzhou factory within three years.
Local aerospace insiders said that with Primus' involvement Suzhou has become a centre for China's aerospace manufacturing industry.
Messier Dowty from France, Singapore Aerospace, US Honeywell and Britain's Forth Rixon have all set up factories in the park, said You.
Primus is setting great store by its Suzhou division which, according to Hoover, is expected to account for 25 per cent of the company's global sales.
Source: China Daily