UTC Aerospace Systems, an operating unit of United Technologies Corp. (UTX) and Aviation Industry Corporation of China (AVIC)’s subsidiary AVIC EM recently launched a joint venture facility in the Xi'an Hi-tech Industries Development Zone in China.
The joint venture between the two companies, named as the Xi'an AVIC Hamilton Sundstrand Aviation Electric Co., Ltd., was formed primarily for the development and manufacture of electric power systems for Commercial Aviation Corporation of China's (COMAC) new C919 jetliner. The new facility will also act as a base for supplying UTC Aerospace Systems' equipment in the international market.
Covering an area of 6,500 square meters, the new facility is expected to commence shipments in the third quarter of 2014. AVIC is a designer and manufacturer of various products for the aerospace industry. The joint venture is likely to enhance AVIC’s expertise in the aviation electromechanical industry as well as strengthen United Technologies' presence in China. The joint venture, therefore, is a win-win situation for both the companies.
Based in Hartford, Conn., United Technologies, the parent company of UTC Aerospace Systems, provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows United Technologies to remain profitable amid challenging macroeconomic environment.
United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Noble Group Ltd. (NOBGY) and Federal Signal Corp. (FSS), both carrying a Zacks Rank #1 (Strong Buy) and Crane Co. (CR) having a Zacks Rank #2 (Buy).
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