GE initially agrees to invest in China airport

SHANGHAI, June 19 (Reuters) - General Electric (GE.N)'s commercial aviation arm has initially agreed to invest in a new airport in south China costing more than 3.7 billion yuan ($537.6 million), its Chinese partner said.

GE Commercial Aviation Services will set up a joint venture with Guangdong Airport Management Corp to build Chaoshan airport in the southern province of Guangdong, the Chinese firm said on its Web site late on Wednesday.

It did not say how much GE will invest or provide the shareholding structure of the venture.

Construction of Chaoshan airport will start later this year, it said, without giving the designed capacity of the airport.

Guangdong Airport Management is the state parent of Guangzhou Baiyun International Airport Co (600004.SS).

Beijing started opening its aviation infrastructure sector three years ago to foreign and domestic investment as it seeks the cash and expertise to propel an industry overhaul, needed to cope with the growing numbers of Chinese taking to the skies.

The country is now spending billions of dollars to upgrade existing facilities and build new airports, attracting outside investors such as Fraport AG (FRAG.DE), Singapore's Changi Airport and the Hong Kong airport authority. ($1=6.882 YUAN) (Reporting by Fang Yan; editing by Jonathan Hopfner)