Training and simulation services provider SimiGon Ltd has set up a Chinese joint venture to target the civil aviation training market.
SimiGon will supply SIMbox licences to the joint venture in a deal valued at $750,000. Pilot training is required in China because of the rapid growth of the market. The number of airports is expected to increased from 175 in 2010 to 230 in 2015. Aircraft numbers are growing at more than 10% a year.
This deal will help SimiGon to diversify away from the military markets.
A profit of $1m is forecast for 2013.
At 31.63p a share, SimiGon is valued at £15m.
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