Slovenian aircraft manufacturer Pipistrel has signed a memorandum of understanding (MoU) with China’s Sino GA Group Co on a long-term joint venture in the field of light and general aviation, Pipistrel said on October 29. The venture between the two companies, which Pipistrel says is valued at more than €350mn, will target China, East Asia and the Asia Pacific region.

The agreement will enable Sino GA Group Co., a member of Sino Group, to produce two Pipistrel aircraft models (Alpha Electro and Panthera Hybrid) in China. 

The Chinese company will also get the exclusive right to sell the two aircraft models in China and neighbouring countries, namely Myanmar, Laos, Thailand, Vietnam, Cambodia, Taiwan, the Philippines, Indonesia, Malaysia, Singapore, Brunei, Korea and Mongolia.

The contract also includes the delivery of 50 of each models, all required know-how on the assembly of the two models, training of personnel in Slovenia, implementation of the assembly process in new facilities in China, and supervision of the newly established production to assure the same quality as at Pipistrel’s Slovenian operations.

“For the value of the contract Pipistrel will also provide the design documentation of the factory, technical organisation as per the civil aviation requirements, the needed special machinery and tooling, software, company management organisation, personnel training and consulting,” Pipistrel said.

Pipistrel will use some of the funds to develop a new and innovative zero emission 19-seat aircraft powered by hybrid electric technology. It also plans to develop hydrogen low temperature proton exchange membrane (PEM) fuel cells for inter-city public transport in China and elsewhere.

The contract will be formally signed at the upcoming 16 + 1 China-CEE summit in Riga on November 5.

In April, Slovenia and China signed agreements on boosting cooperation in aviation between the two countries, which will enable Pipistrel to place its products on the Chinese market.

Pipistrel is a world leading small aircraft designer and producer, specialised in electrically-powered aircraft. With more than a quarter of a century of tradition and its own intellectual property, Pipistrel has gained a significant international reputation.

Sino GA Group Co is a newly established company within Sino group, which spans several sectors. Another member of the group is the Flying Tigers (Beijing) General Aviation Co. Ltd, which is the exclusive representative and distributor of Pipistrel in China. The company operates out of airports and bases in Beijing, Taizhou, Yinchuan, Huangping, Dalian and Heibei.

In October 2015, Pipistrel signed a contract to sell 194 microlight aircraft to the Indian air force, navy and National Cadet Corps (NCC). The deal was seen as an important accelerator for Slovenia’s exports outside the European Union. Pipistrel said on August 3 it had delivered the first batch of training aircraft to India and started training local pilots and engineers.