China Aerospace International Holdings Limited (CASIL) has entered into an agreement with Hainan Expressway and China Great Wall Industry Corporation (CGWIC) to develop a new launch site in the southern Chinese province of Hainan.
The Hong Kong-listed…
China Aerospace International Holdings Limited (CASIL) has entered into an agreement with Hainan Expressway and China Great Wall Industry Corporation (CGWIC) to develop a new launch site in the southern Chinese province of Hainan.
The Hong Kong-listed company’s investment in the project will be financed by China Development Bank Capital (CDB Capital) and PICC Life Insurance. CDB Capital has agreed to invest RMB600m (US$96m), while PICC Life’s contribution has not yet been finalised.
CASIL has entered the venture through two of its subsidiaries, CASIL Hainan Holdings and CASIL New Century Technology Development Company and will hold 50% of the equity capital in Hainan Aerospace Investment Management Company, the company developing the Hainan Project.
Hainan Expressway and CGWIC will both invest RMB315m (US$50.44m) and will each hold a 25% stake.
The Hainan Project will form part of the Hainan international tourism island, which will have an aerospace theme.
“With the strong support from our major shareholder, China Aerospace Science and Technology Corporation, we have successfully brought in investors with strong capital position into the Hainan Project to form a strategic partnership,” said Zhang Jianheng, chairman of CASIL. “We believe that this strategic arrangement will accelerate the development of the Hainan Project.”
