The Slovenian Company Pipistrel and the Sino Signed a Contract for 350 Million Euros
In late October, the Slovenian company Pipistrel (Ajdovščina) discussed the terms of the contract with the Chinese company Sino about 7 years of cooperation in aircraft construction. The contract for about 350 million euros will be signed in Riga on 5 November in the presence of the Chairmen of the Chinese Government and the Central and Eastern European countries in Riga.
The cooperation between the two companies became possible after the Pipistrel received an official permission to sale aircrafts to China, which, according to the Slovenian side, “offers great opportunities for sales in China.” According to the Pipistrel leaders, the cooperation plan will be presented on 2 November at the largest air show in China.
After two years of preparatory work, the companies will join forces to improve the quality of technical research, the mutual exchange of technology and the opening of a Group of Companies in China. Airlines are also planning to exchange their shares of ownership. The Pipistrel and the Sino plan to produce more than 500 ultralight aircrafts per year. As the companies’ representatives have estimated, the benefits of cooperation will exceed the sum of 500 million euros for the next 7 years.
According to the contract terms and conditions, the Pipistrel shall deliver 50 copies of each of these aircraft models, conduct training of employees in Slovenia, arrange the production process at factories in China as well as assume control over the work.
The Pipistrel Company shall allocate a part of the proceeds to develop the new high-tech emission-free aircrafts designed for 19 passengers.
As part of the mutual cooperation, the Chinese company Sino shall receive the exclusive rights to use the Pipistrel’s technology and the production of two models of aircraft: Alpha Electro and Panthera Hybrid in China. In addition, the Sino will be able to sell these models in China, Myanmar, Laos, Thailand, Cambodia, Taiwan, the Philippines, Indonesia, Malaysia, and Mongolia. Meanwhile, these aircrafts are second to none of their counterparts produced by the Pipistrel Company in Slovenia.