Aviation Industry Corp of China (AVIC), the country's leading aviation manufacturer, plans to set up a helicopter company in Tianjin with the local government in a bid to consolidate its diverse businesses.

AVIC will inject its existing helicopter development and manufacturing assets, including China Helicopter Research and Development Institute, Harbin Aircraft Industry (Group) Co Ltd, Changhe Aircraft Industries Corp, and Baoding Propeller Factory, into the new company, according to an agreement signed yesterday.

The company, with a registered capital of 8 billion yuan, will be 69 percent controlled by AVIC and 31 percent owned by the Tianjin government, Li Fangyong, AVIC's deputy general manager, was quoted as saying by the Economic Observer News. AVIC and the Tianjin government will each invest an extra 4 billion yuan into the new company.