![]() In return, Cirrus receives access to the huge Chinese market. In Cirrus, Aboulafia said, the Chinese are buying a good airplane company. "They're not buying the jet engine technology that's made by somebody else altogether."Īccording to a government report, China has put a priority on developing its aviation industry, including general aviation. "They're buying the capability to build a very small plane," he said. China has been hungry for turbofan jet technology, and the manufacturer of the Cirrus jet engine also makes a turbofan engine for cruise missiles.īut Aboulafia said the Chinese won't receive that technology. Richard Aboulafia, an aerospace consultant with the Teal Group, said the sale could raise some suspicions about China's motives. Cravaack said his first priority is to make sure those jobs stay in Minnesota. Chip Cravaack said he will meet with representatives from Cirrus and the Executive Director of the U.S.-China Economic and Security Review Commission later this week to discuss the employment and security implications of the offer. ![]() Duluth Mayor Don Ness said he appreciates the assurances Cirrus management offered that the operations will remain in Duluth, which is his primary concern. In northeast Minnesota, the sale was greeted with optimism. Crescent Capital, owned by Bahrain-based Arcapita Bank, purchased a 58-percent share of Cirrus in 2001. This isn't the first big ownership change for Cirrus. Alan Klapmeier left the company in 2009, after being replaced as CEO the year before. Wouters said the business climate has greatly improved, with Cirrus selling 264 new airplanes last year.Ĭirrus was founded in Wisconsin in 1984 by brothers Alan and Dale Klapmeier, who moved the company to Duluth in 1994. Rumors circulated that Cirrus was having trouble repaying customers who wanted their down-payments on a jet refunded. Cirrus sales and employment crashed in late 2008, with total employment dropping from over 1,300 to just shy of 500 today.Īt one point, Cirrus was behind on rent payments to the City of Grand Forks and to Duluth's Economic Development Authority. The sale comes after several challenging years for Cirrus Aircraft and the General Aviation manufacturing industry. We're all very excited about it and Dale is excited about returning to growth." "The current management team is staying," he said. Wouters said there won't be any turnover among top executives either including company co-founder Dale Klapmeier. But it will also help us in a lot of our effort around a lot of other countries around the world, and so that's what has us excited today." "We think this will help open the Chinese market, where we've made lots of investments and help them develop the general aviation foundation to make it successful. "We're in about 60 countries today," he said. Wouters said the deal will accelerate Cirrus' international expansion. Cirrus has been working on a seven seat personal jet, the Vision SF50, a project delayed by several lean years in airplane sales.Ĭurrent and new jobs will stay in the company's current locations of Duluth and Grand Forks, North Dakota. Wouters said the sale and incoming cash will expedite product development. The sale brings new resources into the company to help development of a new jet aircraft and accelerate the company's global expansion, Cirrus CEO Brent Wouters said. Duluth-based Cirrus Aircraft has reached a deal to sell the company to China Aviation Industry General Aircraft Company, based in China's Guangdong Province.
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