A signing ceremony for supply agreements for China's homemade jumbo jet project takes place in Shanghai yesterday. Commercial Aircraft Corp of China has decided on the choice of major suppliers of avionics and hydraulics conveyance systems for the 150-seat C919 plane.

CHINA'S homemade jumbo jet maker yesterday signed agreements with General Electric Co and Eaton Corp in Shanghai to supply avionics, fuel and hydraulics conveyance systems.

With the signing of the pacts Commercial Aircraft Corp of China, or COMAC, has decided on the choice of major suppliers for the 150-seat C919 jet project.

GE will form a 50-50 joint venture with a Chinese partner to research, develop and manufacture avionics core processing, display, on-board maintenance and flight records system for the C919 jumbo jet, said COMAC.

Six Shanghai government-controlled companies, the Shandong provincial government and Aviation Corp of China will invest in the JV, COMAC said.

"Setting up joint ventures between foreign suppliers and domestic companies can help us cut costs as well as improve supply chain," said Wu Guanghui, chief designer of the C919.

Eaton and COMAC will form a joint venture to design, develop and produce fuel and hydraulic conveyance systems for the project as well as for the global aviation market. Eaton will hold 49 percent in the JV and COMAC will take the balance.

"The total program value of C919 support, including after-market opportunities, is estimated at US$1.8 billion, based on an anticipated volume of 2,500 aircraft," Eaton said.

COMAC will decide the overall schemes for technical, manufacturing and customer service. It will complete the initial design by the end of this year.

China is set to invest 200 billion yuan (US$29.53 billion) to develop its jumbo jet. It is due to make its maiden flight in 2014.