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Shares in AVIC Chengfei soared today after the Chinese aircraft manufacturer, which recently secured a design contract for the Haolong cargo space shuttle program, announced plans to build an aerospace equipment assembly facility in southwestern China. The new base will include cargo shuttle facilities and represents a significant advancement for China’s cargo transportation initiatives.
The company’s stock closed up 6.1% at CNY77.81 (roughly $10.66 USD). Earlier in the day, it jumped 10%, reaching CNY81.40 (approximately $11.50 USD).
The project will be executed by AVIC’s wholly-owned subsidiary, AVIC Chengdu Aircraft Industry, and is set to be located near Wenjiang Airport in Chengdu, according to the latest statement.
Initial investments in land and new manufacturing buildings are estimated at around CNY421.8 million (about $57.8 million USD), with total fixed asset investments projected to reach approximately CNY1 billion (about $137 million USD).
This new facility will serve as the foundation for high-quality development and manufacturing of aerospace equipment, including the Haolong cargo space shuttle, the announcement noted. However, details regarding the construction schedule and further specifics have not yet been disclosed.
The Haolong cargo space shuttle program was first announced by China’s Manned Space Engineering Office in early 2021. The initiative aims to diversify cargo transport options for the country’s space station and explore cost-effective transportation solutions. In late October 2024, the office revealed that AVIC Chengfei’s shuttle design was selected as one of two winning proposals and had received a flight verification contract.
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