China’s AVIC International is to buy U.S. general-aviation engine manufacturer Continental Motors from Teledyne Technologies for $186 million in cash. Anticipated growth in the Chinese general aviation market is cited as reason for the purchase.
The acquisition of Mobile, Ala.-based Continental and its service centers requires U.S. government anti-trust and foreign-investment clearance as well as Chinese government approval, but is expected to close in the first quarter of 2011, says Teledyne.
AVIC is expected to retain Continental’s senior management and its headquarters in Mobile, where the manufacturer employs some 400 people, and to invest in upgrades to operations and increased research and development, according to Teledyne.
Continental has launched development of the TD-300 diesel aero-engine, aiming for certification in 2011. Burning Jet-A fuel, the 230-250 hp. engine is aimed at international markets where Jet-A fuel is more readily available that leaded avgas.
Continental provides engines for a range of piston singles and twins including Cessna’s Corvalis 350/400, the Cirrus SR20/22, Beechcraft Bonanza and Baron, and Diamond DA20, as well as Liberty, Mooney and Piper models.
With the downturn in U.S. piston sales, the international market grew to more than 45% of Continental’s engine deliveries in 2009. There are only 900 GA aircraft registered in China, Teledyne says, but company projects the potential market at anywhere from almost 100,000 to more than 600,000 units.
In April, a Chinese-owned company acquired the assets of bankrupt Oregon-based Epic Aircraft with the intent of restarting kitplane production and pursuing certification of the single-turboprop Epic LT.
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