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Chinalco, Baosteel to take stakes in China's large-aircraft project - report

Beijing (XFN-ASIA) - Aluminum Corp of China (Chinalco), parent of Aluminum Corp of China Ltd (Chalco) (HK 2600;SHA 601600), and Baosteel Group, parent of Baoshan Iron & Steel Co Ltd (Baosteel) (SHA 600019), are expected to take stakes in China's large aircraft manufacturing project, the official Shanghai Securities News reported.

Citing a source, the newspaper said the two companies will take small stakes behind projected largest shareholder State-owned Assets Supervision and Administration Commission (SASAC), aircraft manufacturers AVIC I and AVIC II, and the Shanghai government.

It said the Shanghai government's projected investment is 5 bln yuan, but the size of its expected stake was not given.

China reportedly plans to set up its first manufacturer of large passenger jet aircraft before March.

The new company will be responsible for the design and assembly of large aircraft while also assembling China's ARJ21, a regional jet of about 90 seats launched in 2007.