ARI Opens Chinese Aircraft Recycling Facility

Date: June 22, 2018

Aircraft Recycling International (ARI) has opened the China Aircraft Recycling Remanufacturing Base in Heilongjiang.

Known as ‘The Base’, which according to ARI's parent company China Aircraft Leasing Group Holdings (CALC) is Asia’s first large-scale aircraft recycling facility, operations commenced last Friday (June 8) following a launch ceremony at the 300,000 square meter site.

According to a release issued by CALC, the base will operate across seven business areas which are comprised of: aircraft purchasing, selling, leasing, dissembling, replacing, conversion and maintenance. Services will target airlines, MROs, lessors along with manufacturers and aircraft materials distributors, CALC said.

The Base has been certified by the Civil Aviation Maintenance Association of China as a qualified Civil Aircraft Parts Distributor and has also obtained Approval Certificate of Foreign-Funded Enterprises of the People's Republic of China issued by the PRC Ministry of Commerce.

With the first phase of construction now complete, CALC said the site has an effective handling capacity of 20 aircraft per year. Along with China’s largest bonded warehouse for aircraft parts, its hangar areas can accommodate three narrowbody aircraft simultaneously or one widebody and one narrowbody aircraft together.

CALC has been building up its recycling and disassembly portfolio through its Hong Kong-based ARI subsidiary which acquired U.S.-based Universal Asset Management in March 2017. LI Yuze, general manager of China Aircraft Disassembly Centre, says the opening of the site will help further establish China in the aviation manufacturing value chain.

“As there are yet no comprehensive aircraft recycling and remanufacturing systems in China, ageing aircraft are usually dissembled and disposed of by companies in Europe and the Americas, involving high costs and long waiting times,” he says.

Aviation Week’s Fleet & Forecast data to grow at a compound annual growth rate of 5.3% over the next 10 years. As a result of the new aircraft influx, retirements of older models are anticipated, which Yuze says the center will target.

“More and more civil aircraft in China are set to retire soon, offering extended market opportunities to the emerging aircraft recycling and remanufacturing industry,” he says.

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