News Details

SimiGon enters civil aviation market through joint venture in China

Joint venture positions SimiGon as a significant supplier of ground training systems in the world's fastest growing aviation market

SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce a major expansion of SimiGon's core growth strategy with the Company's first significant contract in China utilising SimiGon's software for training civil aviation pilots.

SimiGon has entered into a joint venture agreement (the "Joint Venture") with Yantai Lan Hai Heng Chuang Zhi Neng Jiao Tong Ke Ji You Xian Gong Si, a leading aviation services company based in China, and investors led by Peter Liu, who is the General Manager of three private civilian aviation schools in China. Under the terms of the agreement, a new entity will be created to which SimiGon will provide the SIMbox licenses enabling the Joint Venture to develop its own training solutions. The value to SimiGon of the initial contract to provide these licenses is $0.75m and will contribute to improved revenue visibility for the year ended 31 December 2014.

The deal brings together SimiGon's industry leading technology with an established training services provider in China to help meet the rapidly growing demands in the Chinese civilian aviation market.

China is the fastest growing aviation marker in the world. A report by Booz & Company, the a global consulting firm, titled, General Aviation In China - Seizing Growth Opportunities, estimates that the total number of aircraft of general aviation in China will grow annually by 10-20%, and by 2015 should reach more than 2,500 aircraft and almost 6000 by 2020.

SimiGon President & CEO, Ami Vizer, said: "It has been a long term strategic goal for SimiGon to enter the civilian aviation sector and this joint venture provides us with the perfect opportunity to enter this sector in a country whose ambition matched the expected growth. Our pilot training solutions are cost-effective and an ideal fit for the demands of the Chinese market. We have entered in to this agreement because we believe the market has great potential and we are delighted to be working alongside strong and visionary partners who have a clear vision of how our technology can leverage their current and future businesses."

Peter Liu, the leader of the investors group, said: "SimiGon has a proven track record and is renowned for its simulation training solutions. We believe the Chinese market has significant appetite for proven technology solutions and we look forward to working with SimiGon's technology, offering our customers an even greater experience and improved learning environment."

View complete announcement on London Stock Exchange Website