As part of Magnus Aircraft Zrt.'s Far East strategy, the Jiangsu Magnus Aircraft Manufacturing Company - a Chinese subsidiary of Magnus Aircraft Zrt. established earlier this year - signed a major investment contract with the People's Government of Huishan District, Wuxi City, China, in cooperation with the Óbuda University and the Ministry of Foreign Affairs and Trade of Hungary.
A showroom, three production units (composite, aircraft assembly and maintenance) and a development centre (Chinese-Hungarian High-Tech Development Centre in cooperation with the Óbuda University) will be established under this large-scale investment contract.
The People's Government of Huishan District, Wuxi City, China, the Óbuda University and the Jiangsu Magnus Aircraft Manufacturing Company are jointly launching a cross-border strategic cooperation that will renew and raise the technological collaborations between China and Hungary to a new level.
The objective of the partners is to create a thriving community of support for key industries in the Chinese and Hungarian markets (such as aviation, energy, construction, rail transport, etc.), which will facilitate business communication, technological change, new innovation and business projects, and the free movement of high-tech technologies, equipment, experts and talent in related industries between the two countries.
The cooperation agreement is also of strategic importance for the Óbuda University. Hungary's preeminent technical higher education institution joins the project with internationally renowned researchers, including by integrating cutting-edge technologies in the field of aircraft.
The agreement was preceded by a preliminary agreement signed on 20 July 2022, in which the parties set out the strategic elements of the cooperation and assured their commitment to the industrial cooperation between the two countries and to the promotion of aviation in China.
The strategic cooperation is a major milestone in the company's strategy to enter the Far East market for its products, as well as in the history of Magnus Aircraft. The objective of the participants is to create a large-scale business environment in which Jiangsu Magnus Aircraft Manufacturing Company will become a dominant aircraft production company in the Chinese market, with a total investment of €88.39 million.
The complex has a total surface area of 18,000 m2 and will be built on 200 hectares of industrial land.
In the units created, the joint venture will provide a total of 300 jobs opportunities, a leading role for Hungarian colleagues and development opportunities for researchers at the Óbuda University, among others.
By implementing the project, the joint venture will create competences and capacity to produce and sell more than 2,800 Hungarian-developed Fusion aircraft and more than 400 four-seat aircraft in nine years.
Together with the related services, it is expected to generate sales of RMB 16 billion, generating a pre-tax profit of nearly RMB 7 billion.
As part of the Far East strategy and cooperation, the founding declaration of the Chinese-Hungarian High-Tech Development Centre has also been signed.
The completion of the entire project will be a unique milestone for the Hungarian aerospace industry and for cooperation between the two countries.