Taiwanese Lawmaker Says Company Must Find Private Funding

Taiwanese-funded jet manufacturer Sino-Swearingen -- which received FAA certification for its six seat SJ30-2 last November, and is just now beginning customer deliveries -- may be facing a significant hurdle from Taiwan's government, with an opposition lawmaker calling for the US company to be shut down if it can't secure additional private funding.

"The Taiwan government should not pour more money into the company, and if it cannot finance itself it should shut down," said Lai Shyi-bao of Taiwan's opposition Nationalist Party.

The Herald-Mail reports Taiwan's government has invested about $500 million in Sino-Swearingen since the company was established in 1996, making it the majority shareholder in the company. The venture's other large equity holder is Swearingen Aircraft Corp. of San Antonio, TX.

Taiwan had invested in the company as part of its plans to build up its aerospace industry, hoping the island nation would attract manufacturing jobs associated with the project.

That hasn't come to pass as Taiwan had hoped; Sino-Swearingen is based in San Antonio, and has its final assembly plant located there. The company also produces the SJ30-2's fuselage, wings, and empennage at a plant in Martinsburg, WV.

Another official with the Taiwanese government blamed issue at Sino-Swearingen on management problems, and the loss of engineering and other talent.

"For Taiwan, the best possible solution may be to auction off the company," said the official, who spoke on condition of anonymity to the Herald-Mail.

The business jet carries a sticker price of about $6.5 million.

FMI: www.sj30jet.com