Aviation supplier Future Advanced Composite Components (FACC, Ried / Austria; www.facc.at) – formerly Fischer Advanced Composite Components – recently was acquired by Xian Aircraft Industry Company (XAC, Xian, Shaanxi / China). The relevant contracts were signed in Beijing. Once the transaction has been finalised (probably before year’s end) XAC will hold 91.25% of the shares. Another 5% of shares will remain with Austrian holding company ACC Kooperationen und Beteiligungen, while the remaining 3.75% will be retained by Stephan GmbH of CEO Walter Stephan. The parties have agreed not to disclose the purchase price. Former shareholders Salinen Austria and ACC Kooperationen und Beteiligungen, which each held 47.5%, felt they were unable to meet the company's financial needs – see Plasteurope.com of 01.07.2008.

FACC is to operate as an independent "Composite Centre of Excellence". After the purchase, XAC – part of the state-controlled China Aviation Industry Corporation (AVIC) – wants to raise the company's capital from the current EUR 40m to at least EUR 80m. This would be an important strategic step in securing the company’s continued growth and safeguarding future financial investments in development. "We are bundling our forces precisely at the right time. Not taking into account the present crisis, the aviation industry will continue to grow in the future. The plastics segment especially will grow at an above-average rate," Stephan said. He wants to extend the existing product portfolio to include large, more complex systems as well as complete modules and subassemblies. The company plans to cooperate closely with XAC in the design and development of composite parts and systems.

Stephan says the Chinese company has guaranteed the jobs of the 1,550 employees in Austria and has also assured the future existence of the production sites. But works council member Thomas Petersen is sceptical about such promises. He expects more simple production tasks to be moved to China. "I cannot imagine that orders from Asia will be manufactured in Austria," he said in an interview in the Austrian newspaper "Wiener Kurier".

XAC has been a longstanding business partner of the Austrian company in China. As such, FACC both developed and produced the passenger cabin of the Chinese regional aircraft "ARJ21". With XAC’s support, the FACC management team hopes to be involved in the development and construction of the medium-haul aircraft "C919" – which will compete with the Boeing 737 and Airbus A320.

China is currently regarded as the world's second largest aircraft market after the US. Analysts believe the country will need more than 3,000 new aircraft in the next 20 years worth at least USD 400 bn. XAC has also been supplying western customers like Airbus and Boeing since 1980.

In the 2008/09 financial year (28.2.), FACC posted sales of EUR 265.3m and employed about 1,580. For the current business year, the Austrian company anticipates moderate growth.