April 10th, 2015 in America, AVIC (China Aviation Industry) announced its acquisition of Align Aerospace, which was the main global supplier of aviation standard parts. This acquisition is another important overseas acquisition after merging FACC (Future Advanced Composite Components) in Austria, Cirrus in USA, and Continental Motors in USA.

Align Aerospace was the fourth largest global integrate supplier for standard parts, who as well has the qualified supplier certification to offer standard parts for Boeing, Airbus S.A.S, Bombardier, PIA, GE, and Honeywell, etc. In 2004, the sales revenue of Align reached to 0.2 billion USD, within which there were 20 million profit before tax.

An insider analyzed that this acquisition can on hand improve the domestic production level of standard parts, in order to comply with the international level, and on the other hand, can partly solve the problems occurred in the process of airworthiness certification.

“Indeed, there are no supplier for aviation standard parts in China. To acquire Align can help to extend to the supply of standard parts in aviation field, which might bring the benefit of offering the strategic guarantee for not only supply, but also engine production, plane maintenance, etc.” said a director of AVIC.
Based on the introduction from AVIC, another reason for this acquisition is to achieve its aim of sale revenue. AVIC plans to gain 0.1billion CNY revenue by 2020. With this acquisition, the company can accomplish its task ASAP.

Another manager of AVIC said that, the integrate supply of standard parts has been one of the crucial segment of manufacturing chain in Aviation Industry. With the development of aviation internationally and domestically, the market demand on standard parts increased rapidly. Therefore, the global procurement, supplying chain integration and design optimization form the crucial base for participating in the international market competition.