China's Shenyang Aircraft Corp. (SAC) signed a deal with U.S.-based Cessna Wednesday to manufacture a new light sport aircraft for the world's largest manufacturer of general aviation airplanes.

SAC, a subsidiary of China's state-owned aircraft maker AVIC I, will assemble the Cessna 162 SkyCatcher for export, while Cessna will provide the design, on-site support and quality assurance, said a joint statement from the two companies.

After the first SAC-made Cessna 162, to be delivered in November 2008, passes quality tests, mass production will start, with an annual output of 700, it said.

The Cessna 162, unveiled in July 2006, is priced at 109,500 U.S. dollars each for the first 1,000 orders and afterwards the price will rise to 111,500 U.S. dollars, it said. Cessna has received orders for 900 such aircraft.

SAC president Luo Yang said in the statement that his company regards Cessna as a significant partner in the general aviation segment and the contract makes SAC the sole source supplier of Model 162.

"Through decades of joint production ventures and sub-assembly ventures with the industry's top manufacturers, SAC has emerged as the premier aircraft enterprise in China," said Cessna CEO Jack Pelton. "That experience and their outstanding facilities and production capabilities make them the perfect partner for us on the SkyCatcher program."

Founded in 1951, SAC is a civilian and military aircraft manufacturer in northeast Chinese city of Shenyang. Its clients include Boeing, Airbus, Bombardier, Spirit AeroSystems and Singapore Aerospace.

(Xinhua News Agency November 29, 2007)