INTERNATIONAL BUSINESS DAILY

China Gas to establish JV in Hunan

China Gas Holdings Ltd, a gas pipeline construction company, will invest 35.2 million yuan (US$4.25 million) in a joint venture to construct a gas pipeline and distribute gas in Central China's Hunan province, company officials said.

Total investment in the venture will be 44 million yuan (US$5.32 million). Yiyang City Development Co Ltd will provide the remainder of the funding.

"Profits generated will be stable and sufficient to cover the investment contribution," the company said.

Construction will begin by the end of 2004, and gas consumption in Yiyang, in Central China's Hunan Province, will increase to 80 million cubic metres annually by 2010. That will be up from the current 26 million cubic metres.

China Gas will have an 80-per-cent stake in the joint venture, through two wholly owned subsidiaries.

CHINA NEWS SERVICE

Air China to increase fleet

Flagship carrier Air China plans to boost its fleet to more than 200 aircraft, from 110, over the next decade to ensure it continues soaring with the world's fastest-growing aviation market.

"Air China will upgrade its fleet by purchasing new aircraft over the next 10 years," said Zhang Yang, general manager of a company with sole aircraft import rights for Air China.

US-based Boeing Co dominates the fleets of Chinese airlines, and the firm expects to add 1,900 aircraft to those fleets over the next two decades. However, Boeing has been losing ground to France-based Airbus, at a time when the global aviation industry has been in the doldrums.

Air China, which is not listed, merged with two other airlines last October.That merger created a new Chinese aviation giant and put it on the runway for an eventual overseas stock listing.

(Business Weekly 10/21/2003 page1)