First aircraft dismantling project in southern China's Hainan FTP launches

HAIKOU -- The first aircraft dismantling project in the Hainan Free Trade Port was launched on Friday at the Hainan FTP One-Stop Aircraft Maintenance Base. The project, undertaken by Grand China Aviation Maintenance Co Ltd under HNA Technic, marks the completion of Hainan's aviation maintenance value chain loop.

Aircraft dismantling is a key part of the aviation circular economy. By dismantling retired aircraft and testing and refurbishing their components, the process enables the reuse of parts and materials, delivering both economic and environmental benefits, while boosting the competitiveness of Hainan's aviation maintenance industry.

Hainan FTP offers several advantages for the business. Hainan's strategic location as a southern island makes it an important gateway connecting China with the Pacific and Indian Oceans, and the maintenance firm brings proven expertise in aircraft repair and modification.

Policies in the Hainan FTP also offer significant support for aircraft dismantling and the subsequent recycling and re-manufacturing of aviation components.

The Hainan FTP – the world's largest free trade port by area – fully launched island-wide special customs operations in December 2025, allowing freer entry of overseas goods, expanding zero-tariff coverage, and introducing more business-friendly measures.

The global market for repaired and re-manufactured used serviceable components is vast, according to industry estimates. Meanwhile, the Hainan FTP's zero-tariff and other import facilitation policies help companies reduce both capital and time costs when re-manufacturing components from dismantled aircraft.

With repair, modification, dismantling and component recycling now in place across the value chain, more aviation-related companies are expected to gather in Hainan, driving growth in aviation logistics, component trading, maintenance and other related industries, according to the Jiangdong New Area Administration Bureau in Haikou city, where the base is located.