China Steelmaker, Aluminium Firm Eye Large Jet Venture

China's largest steel maker and its top aluminium producer plan to obtain stakes in a new venture that wants to make large jets to rival Airbus and Boeing, state media said Monday.

Baosteel Group and Aluminium Corp of China (Chinalco) join a series of other companies and government departments that have expressed an interest in participating, the Shanghai Securities News said, citing a source.

The new company, which is tasked with developing and making passenger jets with more than 150 seats, is expected to be officially launched before the annual gathering of the national legislature in March, the report said.

Analysts have said the large jet venture, approved by a cabinet meeting in February last year, could grow into a potential rival of global aviation giants US-based Boeing and Airbus of Europe.

The central government, which will inject cash into the venture through the State-owned Assets Supervision and Administration Commission, will become the largest shareholder, according to the paper.

China Aviation Industry Corp I (AVIC I) and AVIC II -- the country's two major aircraft makers -- will jointly be the second largest shareholder, with local governments taking smaller shares, it said.

China unveiled its first home-made regional passenger airliner -- mid-ranged ARJ-21 with a capacity of 70 to 90 seats in December and the plane is expected to make its first test flight in March.

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