File Photo: Xinhua

Chinese firm Duofu Group's aviation unit has acquired Italian helicopter firm Fama on Tuesday, while revealing a 5 billion yuan-investment plan to build a complete aviation industrial chain covering research and development to production to sales and operation.

Fama will become a wholly-owned subsidiary of Duofu, with all of its business links including research and development (R&D), production, sales and intellectual property rights all being acquired. The acquisition signing ceremony was held in Italy's Milan as well as China's Beijing and Hangzhou. 

The company's aviation arm Duofu Aviation Industry Group Co will not only expand the capacity of existing products after the acquisition, but also set up a helicopter engine design and R&D center in Europe to research products such as unmanned aerial vehicles, electric vertical take-off and landing aircraft and other products. 

Duofu will also set up a R&D center in China to build production lines of helicopters and plane engines. 

In total, Duofu Aviation is planning to invest 5 billion yuan to gradually form a complete aviation industrial chain including R&D, production, sales and operation to drive and form industrial blocs covering an aviation training base, aviation insurance industry, airplane leasing, aviation clubs and logistics. 

Duofu's acquisition and investment plans came amid China's flourishing aviation industry. According to estimation of the Aviation Industry Development Research Center of China, the number of civilian helicopters in China will reach more than 3,500 by 2027, while the market size of helicopter production and sales alone would amount to about $14.4 billion.