Large Aircraft Recycling Facility Opens in China

Asia's first large-scale aircraft recycling facility, China Aircraft Recycling Remanufacturing Base, owned by Aircraft Recycling International Limited (ARI), a member company of CALC, formally commenced operations last week.

China Aircraft Recycling Remanufacturing Base is located on the south side of China's Harbin Taiping International Airport. It has a gross floor area of 300,000 sqm. With the construction of Phase I complete, the base has an effective handling capacity of 20 aircraft per year. Its hangar can hold three narrow-body aircraft simultaneously or one wide-body aircraft and one narrow-body aircraft together.

The base covers seven areas of business operation, including aircraft purchasing, selling, leasing, dissembling, replacing, conversion and maintenance, providing dynamic aircraft recycling solutions to airlines, MROs, lessors, as well as manufacturers and distributors of aircraft materials.

Mr. LI Yuze, General Manager of China Aircraft Disassembly Centre, said, "The base completes the final link in China's aerospace manufacturing value chain. As there were no comprehensive aircraft recycling and remanufacturing systems in China, aging aircraft are usually dissembled and disposed of by companies in Europe and the Americas, involving high costs and long waiting times. More and more civil aircraft in China are set to retire soon, offering extended market opportunities to the emerging aircraft recycling and remanufacturing industry. With our high standards and stringent technology requirements, the base is set to become China's leading platform of aging aircraft solutions with business presence in Greater China and Asia as a whole."

With its comprehensive aging aircraft solutions, ARI will also further improve CALC's aircraft full value-chain. CALC's unique business model offers services covering an aircraft's full life cycle to meet airlines' fleet management requirements, including services for new aircraft, aging aircraft and aircraft coming to the end of their lives.

Mr. CHEN Shuang, JP, Chairman of CALC, said, "Aircraft recycling is the natural extension of the aviation value chain. The base is part of CALC's major initiative to develop into a full value-chain aircraft solutions provider for the global aviation industry. Over the years, CALC has built an efficient capability for aircraft asset management, close partnerships with its aviation partners, and flexible and diversified financing resources. ARI's swift and steady development in aging aircraft value chain will further enhance CALC's diversified asset management capability, maximizing value for our aviation partners."

Currently, ARI's aircraft recycling base has been granted the Maintenance Certificate in compliance with CCAR-145-R3 required by the Civil Aviation Administration of China. The base has been certified by the Civil Aviation Maintenance Association of China as a qualified Civil Aircraft Parts Distributor and obtained the Approval Certificate of Foreign-Funded Enterprises of the People's Republic of China issued by the PRC Ministry of Commerce.

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