Trans-Pacific Aerospace Company, Inc. (OTCBB: TPAC) announced today that its China enterprise has received a special five-year corporate tax exemption from Guangdong Province.
"Most foreign companies are required to do business in China for at least 10 years and pass a laundry list of parameters before they can even ask for concession like this," said Bill McKay, Trans-Pacific Aerospace CEO. "Even then, the tax burden that is typically granted is for only two years. What makes us different is that we make something that no other manufacturer in China can make."
Trans-Pacific Aerospace Company's self-lubricating spherical bearings can be used in both new commercial aircraft and spares for the existing commercial fleet.
In a recent interview with Xinhua, Boeing-China President David Wang said with over 6,000 Boeing airplanes "flying with major components made in China," China now accounts for an "essential part" of Boeing's capability to manufacture first-class aircraft. "Airplanes cannot fly with one part missing. We have many sole source suppliers in China that are an integral part of our manufacturing system," said Wang, who also serves as vice president of international relations of The Boeing Company, the world's largest aerospace manufacturer.
Trans-Pacific Aerospace is currently in the process of qualifying its Guangzhou China manufacturing facility and is producing test parts which will be subsequently submitted to the U.S. Navy for certification.
About Trans-Pacific Aerospace (TPAC)
Trans-Pacific Aerospace designs, engineers and manufactures self-lubricating spherical bearings for commercial aircraft, with planned product extensions using similar proprietary technology into maritime, power plant and space applications. Through its ownership in Godfrey (China), Ltd., it has a special operating license granted by China's Ministry of Science and Technology. Godfrey has completed prototype manufacturing and testing in China and the United States and is pursuing SAE parts qualification of its facility in Guangzhou, China.