14 December 2010
Teledyne-Continental motors has been sold the Chinese company AVIC International for $186 million. Under the transaction, AVIC International will acquire Teledyne Continental Motors. (‘Continental Motors’) and Teledyne Mattituck Services.
A statement from Teledyne Technologies Incorporated said, ‘With major customers such as Boeing, Airbus, Honeywell and Snecma, AVIC International is a trusted supplier and partner of leading aviation companies in the U.S. and around the world. The transaction will enhance the ability of Continental Motors to compete globally, especially in growing overseas markets, such as China. Today, Continental Motors’ primary markets are the U.S. and Europe. On the other hand, China opens one of the world’s largest potential markets for general aviation aircraft, due to its growing population, large geographical area and expanding infrastructure. Compared to 230,000 General Aviation aircraft in the U.S, China has approximately 900 small aircraft operating in the country. That number is expected to grow over the next decade, raising demand for FAA-certified piston engines.
‘AVIC International was attracted to Continental Motors’ long history in the general aviation market and the company’s reputation for product quality, safety and service. With the acquisition of Continental Motors, AVIC International is making a principal commitment to the Mobile region. AVIC International expects to retain the senior management of Continental Motors and maintain Continental Motors’ global headquarters in Mobile, Ala. Furthermore, the transaction sets the stage for new hires of skilled workers in Mobile, as international demand for piston-powered aircraft would result in increased engine manufacturing at Continental Motors. AVIC International also plans continued investment and upgrades in Continental Motors’ operations, as well as increased research and new product development.’
The statement also mentioned that the move will mean increased investment in Continental’s TD-300 diesel engine. The sale included a commitment to remain in Mobile, where Continental has been on the former Brookley Air Force base since the 1960s <a href=”http://www.teledyne.com”>Click here for more</a>
