Sends Letter Treasury Secretary Geithner On Cirrus
Purchase
U.S. Congressman Chip Cravaack (R-MN-8) has sent a letter to
Treasury Department Secretary Timothy Geithner regarding the
proposed purchase of Cirrus Industries Incorporated by the China
Aviation Industry General Aircraft Company.
Congressman Cravaack
“In the letter I sent today (Friday), I urged Treasury
Secretary Timothy Geithner – who serves as the head of the
Committee on Foreign Investment in the United States – to use
extreme caution when dealing with the China Aviation Industry
General Aircraft Company’s bid to purchase Cirrus Industries
Incorporated,” wrote Cravaack, who is Vice Chair of the House
Transportation and Infrastructure Aviation Subcommittee. “My
main goal is to ensure the high-skilled jobs at Cirrus stay in
Minnesota, instead of being shipped overseas to one of our main
competitors in the global market. On top of that, I have serious
concerns with the transfer of advanced aircraft technology from
Cirrus to a company that is essentially owned and operated by a
Chinese government-run defense contractor.”
The Committee on Foreign Investment in the United States (CFIUS)
is an inter-agency committee authorized to review transactions that
could result in the control of a U.S. business by a foreign entity,
in order to determine the effect of such transactions on national
security. If CFIUS finds that a transaction would present a risk to
national security, the Committee may enter into an agreement with,
or impose conditions on, the parties involved to mitigate such
risk. It may also refer the case to the President of the United
States for action.
Cirrus CEO Brent Wouters
Cirrus CEO Brent Wouters said Cravaack is "completely wrong on
the facts," according to a report in the Duluth News Tribune.
Company spokesman Todd Simmons said that all the technology in use
by Cirrus is already known by the Chinese, and that the country's
motivation for buying the company is to beef up their aviation
infrastructure.
But Craavaack says there are problems with the possible
acquisistion by the Chinese of composite carbon fabrication, The
FJ33 engine, FADEC systems and the full-airframe parachute system.
He notes that AVIC, which controls CAIGA, is involved in both
commercial and military aviation sectors, and is designing the J-20
stealth fighter for China.
Wouters has also said that the sale of the company will not mean
the airplane will be built in China, costing American jobs. He has
said previously that moving production to China would add an
additional $35,000 to each airplane sold, and that it would not be
cost-effective. He said blocking the sale could mean the end of the
company, and losing those jobs permanently. A group of
American companies have reportedly been planning a
counter-offer, though Wouters said he has not been
contacted.
Brian Foley
GA consultant Brian Foley, who is assembling that competing
offer, tells ANN that he has received strong interest from multiple
parties who would like to have an opportunity to purchase the
company.