FACC, based in Ried, Austria, offers a range of composite products, from aircraft fairings to fuselages and wings, engine and engine nacelle components and complete aircraft cabins.

XAC is part of the Aviation Industry Corporation of China (AVIC), a state-owned enterprise focused on the aircraft market.

On completion of the acquisition, 91.25% of the shares of FACC will be held by XAC, a developer of military and commercial aircraft. 5% will remain in possession of the Austrian holding company ACC Kooperationen und Beteiligungen GmbH and 3.75% will be retained by Stephan Ges.m.b.H.

The transaction is subject to regulatory approvals and is expected to be finalised by the end of the 2009 fourth quarter.

After the acquisition, a share capital increase will be carried out, raising shareholders' equity from the current €40 million up to no less than €80 million. FACC says this will assure its planned business development.