Taiyuan, the capital of Shanxi province, plans to build an industrial aviation cluster with an annual output value of 50 billion yuan ($7.43 billion) – as well as an industrial aviation park that will integrate plane repairs and maintenance, pilot training and the manufacturing of spare aviation parts.

According to the Shanxi Transformation and Comprehensive Reform Demonstration Zone, an aircraft dismantling base and an aviation bonded logistics project -- two joint ventures in partnership with Xiyouyuan Aviation Technology Group -- are under construction in the Taiyuan Wusu Comprehensive Bonded Area. 

With a total investment of 3 billion yuan by Xiyouyuan Aviation Technology Group, the aircraft dismantling base covers a planned area of 40 hectares. It will mainly dismantle old aircraft, as well as re-sell and recycle valuable aircraft parts that are in good condition.

Once completed, the base is expected to dismantle 100 single-aisle planes, generating 9.75 billion yuan in annual output value and pay taxes of 1.13 billion yuan annually, driving development of the domestic plane dismantling sector. 

The aviation bonded logistics project with an investment of 400 million yuan covers a planned area of over 5 hectares and will transport quality products by air across Taiyuan, its surrounding areas and countries along the Belt and Road Initiative.

It is estimated that once finished, the project will contribute 1.36 billion yuan to output value and 52 million yuan to taxation each year. 

In addition, Xiyouyuan Aviation Technology Group intends to invest in constructing a civil aircraft maintenance and refit delivery center and a simulator training center. 

Currently, the Shanxi Transformation and Comprehensive Reform Demonstration Zone also has on its drawing boards an aviation complement industrial park in local Xiaohe Industrial Park, which will complete the aviation industrial supply chain in Shanxi. 

It is expected that companies engaged in aviation materials, aircraft parts, aircraft interior systems, avionics, and aerospace derivative manufacturing fields will be attracted to relocate to the park.