China has established its first ever jumbo passenger aircraft firm in Shanghai. The company is said to be part of the country's large jet program, which will make China one of the few countries capable of producing super-sized aircraft. Premier Wen Jiabao has extended his full support to the project, emphasizing the importance of striving for innovation. Our reporter TU Yun has the details.

Reporter:

The newly-established company, named Commercial Aircraft Corporation of China, or CACC, will be responsible for researching, developing, manufacturing and marketing the homegrown jumbo passenger aircraft.

It will make the country capable of building aircraft with a take-off weight of more than 100 tons, or planes with more than 150 seats.

According to the Xinhua News Agency, only six countries are capable of building such super-sized aircraft, including the United States and Russia.

Commenting on the jet program, Chinese Premier Wen Jiabao said China should unswervingly strive for innovation in researching and developing the large aircraft.

Vice-Premier Zhang Dejiang addressed the company's inauguration ceremony.

"CACC should use cutting-edge technologies and materials to set a new benchmark in security, reliability, coziness and eco-friendliness for aircraft."

The Vice-Premier also said China should import sophisticated technologies, and make breakthroughs in core technologies to safeguard intellectual property rights.

The new company has a registered capital of 19 billion yuan, or some 2.7 billion US dollars. The state-owned Assets Supervision and Administration Commission is its biggest shareholder.

The chairman of the company's board, Zhang Qingwei, said the process of developing the jet program has begun.

"We have identified 20 key technologies involved in our program. To guarantee successful running of the program, we will be working with different firms dealing in engines, airborne equipment and material."

Jin Zhuanglong is the company's general manager.

"We should consider taking advantage of our current aviation resources, and at the same time, have international cooperation to develop our program. We welcome international talents to help develop our civil aviation industry."

Jin Zhuanglong said when China started building large jets, it would pose no threat to large jet-makers like Boeing and Airbus.

The company plans to have its first jumbo aircraft made before 2020.

TU Yun, CRI news.