China plans to set up rocket company

March 10th, 2008 - 10:05 pm ICT by admin  

Beijing, March 10 (Xinhua) China will set up an umbrella company to integrate the technical and marketing aspects of rocket building, an official with the China Academy of Launch Vehicle Technology said Monday. The planned share-holding company is expected to integrate a number of institutions involved in rocket research, development, manufacturing and testing, and would be listed in the share market, said Liang Xiaohong, the academy’s vice-president.

A scheme for the set-up would be unveiled this year, said Liang, a member of the 11th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the top political advisory body.

China is set to complete the share-holding reform of its military industries within five years and will raise 50 billion to 60 billion yuan ($6.82 billion to $8.18 billion) from the capital market by the end of 2010.

“China Aerospace Science & Technology Corporation (CAST), which owns the academy, has decided to start the share-holding reform in the rocket sector, as the time is still not ripe for listing the entire aerospace industry,” said Liang.

He said the rocket company, to be located at a production base in Tianjin, will regroup all CAST institutions that are involved in rocket research, production and testing.

“The share-holding reform will boost the rocket industry and the capital market,” said Liang.

Currently, four of the CAST’s companies are listed in the share market in the Chinese mainland and two are listed in Hong Kong. None of them is in the rocket industry.

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