Jetpack flying machines to be made in China
Jetpack flying machine company Martin Aircraft will have its flying machines produced in China for that market in the future.
The company, listed on the Australian sharemarket, has formed a joint venture with its Chinese cornerstone shareholders KuangChi Science.
The aim of setting up joint venture KuangChi Martin Jetpack (KCMJ) was to sell Martin Jetpack products in Hong Kong and China and pursue research and development on the jetpack following its commercialisation, the company said in a statement to the ASX on Friday.
It addition KCMJ "will have access to production facilities in China specifically for the sale of Martin Jetpacks in China, with the associated cost reduction benefits that this should bring to the group."
Martin Aircraft chief executive Peter Coker said on Monday KuangChi Science would develop the facility in China in which to build the jetpacks.
The company had the capability at the Wigram facility in Christchurch to build up to 500 jetpacks a year and that business model would be replicated in China.
Early production from Christchurch might well go to China initially, Coker said.
As previously disclosed at the time of the initial public offering (IPO) of shares in Martin Aircraft, KuangChi Science and Martin Aircraft have paid in A$2m each into the joint venture as share capital.
Martin Aircraft has granted KuangChi the option to sell its 51 per cent of KCMJ to Martin Aircraft, which has 49 per cent, over 30 months from the date of Martin Aircraft's listing in February this year.
Martin Aircraft will pay for that through the issue ot shares in Martin Aircraft to KuangChi, lifting KuangChi's stake in Martin Aircraft.
Coker said the establishment of the joint venture with KuangChi marked another significant milestone for the company.
Martin Aircraft's target market is "first responders" like police, ambulance and emergency services and the military, commercial uses including agriculture, and personal use.
Coker said all three of these markets were alive in China.
The flying machine was initially conceived and developed by South Islander Glenn Martin in 1981 and later Martin Aircraft was founded in 1998.
Based on current testing the jetpack will have the capability to fly for over 30 minutes at a speed of up to 74 kilometres and hour and an altitude up to 1000 metres, the company said.