China’s AVIC Plans Airplane Cabin Manufacturing Plant in Croatia

Aviation Industries Corporation of China (AVIC), China state-owned civil and military plane manufacturer plans to set up a plant in the European country of Croatia.

AVIC makes several civilian airplanes and has big plans to get into the global market for single and double aisle airliners challenging the traditional dominance of Airbus and Boeing.

On Mar. 29, a delegation led by Chen Yuanxian, Vice President of AVIC, visited Croatia to investigate a candidate site for a low-cost manufacturing center. The delegation was fully informed of Croatia's investment environment and related policies, an AVIC press release said.

This April, China and Center-and-Eastern Europe Leaders’ Meeting will take place in Croatia and China Prime Minister Li Keqiang will lead a delegation to visit Croatia then. The meeting will strengthen China-EU cooperation, and AVIC is planning to expand its production into Croatia to support this relationship and the “Belt and Road” initiative.

Croatia, the latest member of the European Union, holds great potential for economic development and can be a stronghold for China companies to cooperate with the EU. According to the research by ACS（AVIC Cabin Systems), Croatia has significant cost-effective advantages, making it an ideal candidate for ACS’s low-cost manufacturing center.