Chinese firm offers to buy US plane maker

Beijing, July 11 (IANS) A Chinese helicopter engine manufacturer plans to buy the US' aircraft maker Hawker Beechcraft Inc. for $1.79 billion, it was reported here Wednesday.

The Superior Aviation Beijing Co. Ltd. has already "executed an exclusivity agreement" with the US manufacturer, the China Daily reported.

Superior intends to expand its product lines in the aviation industry, said Qian Chunyuan, assistant to the company's chairman, Tuesday.

The company is 60 percent owned by a closely held private entity and 40 percent by a firm controlled by the Beijing municipal government.

Qian said the company is confident about the transaction, although the agreement will still be subject to a further competitive public auction process if the parties successfully negotiate an agreement, the newspaper said.

At least five other companies, including Embraer SA, Textron Inc and New United Group, might offer a higher price for Hawker Beechcraft, since Superior's price is already released, business insiders said.

Hawker Beechcraft, owned by GS Capital Partners and Onex Partners, has struggled with declining demand for its military planes and business jets, and filed for bankruptcy protection in May.