Yin Jiaxu: COEG hold 77% stake of Changan

It is reported by SOHU that at ten o’clock in November 10th, the Great Hall of the People in Beijing, China Ordnance Equipment Group Corporation and China Aviation Industry Corporation will sign the cooperation agreement to merger the Ordnance Equipment Group Corporation’s Changan Automotive Group and China National Aviation Group’s CNAC auto.

Before the press conference, SOHU did an exclusive interview with Yin Jiaxu, the vice president of China Ordnance Equipment Group Corporation. Yin confirmed that after the reorganization, China Aviation Industry Group would hold a stake of 23% in Changan Automotive Group and China Ordnance Equipment Group Corporation 77%, that was, the two sides share a ratio of twenty to seventy-seven.

　　The background information

　　China Aviation Industry Group

China Aviation Industry Group is a centrally administered state-owned large enterprise as well as a state authorized investment institutions that integrated by the previous first and second group of China Aviation Industry. The corporation is comprised of defense, transport aircraft, engines, helicopter, airborne equipment and system, general aircraft, aviation research, flight test, trade logistic, asset management, project planning and construction, automobile and other industry boards and holds a jurisdiction of nearly 200 subsidiaries ( branches), more than 20 listed companies and about 40 million staffs. July 8th, when the U.S. Fortune magazine released the latest rankings of the world top 500 enterprises, China Ordnance Equipment Group Corporation for the first time declared and successfully selected, ranking the No. 426 and becoming the first China aviation manufacturing enterprise and Chinese Ordnance corporation on the world top 500 list.

　　China Ordnance Equipment Group Corporation

China Ordnance Equipment Group Corporation is a state-owned enterprise directly managed by the central government and a large ordnance combination of military and civilian, which is also a most dynamic one. In May 1982, approved by the State Council, based on the original fifth Machinery Ministry, the Ordnance Ministry was formed. In December 1986, with the State Council’s approval, Ordnance Ministry and Machinery Ministry combined to form the State Administration of Machinery Industry Committee, while the original two were revoked.

In August 1988, with the agreement of the State Council, machinery and electronics industry Ministry(consolidated by National Machinery Industry Committee and the Ministry of Electronics Industry) and China North Industry (Group) Corporation were established while the latter was attached to the former, responsible for the management of the ordnance industry. In January 1990, after the State Council and Central Military Commission approved, China General Ordnance Industry Corporation was founded based on the establishment of China North Industry Corporation, functioning as manager within the whole weapon industry. In July 1999, approved by the State Council, China Ordnance Equipment Group was established on the basis of the original part of China Ordnance Industry Corporation-owned enterprises and institutions.(Translator: Yalong/ Jessie)

　　See original Chinese report Please click