Hainan Free Trade Port launched its first aircraft dismantling project on Friday, completing a full aviation maintenance loop covering repair, modification, dismantling and component recycling on the island, according to Chinese state media Xinhua.
The project is operated by Grand China Aviation Maintenance Co., Ltd., a subsidiary of HNA Technic, at the Hainan FTP One-Stop Aircraft Maintenance Base in Haikou. The process involves taking retired aircraft apart, testing components, and refurbishing reusable parts for resale. The practice, part of what is known as the aviation circular economy, has been established in major aviation markets such as the United States and Europe for decades. The base is located in Haikou's Jiangdong New Area.
The Hainan Free Trade Port, covering the entire island province, fully implemented island-wide special customs operations in December 2025, allowing duty-free entry of overseas goods and extending zero-tariff coverage to imported materials. According to Xinhua, the Jiangdong New Area Administration Bureau expects the free trade port's policies to reduce capital and time costs for companies importing aircraft for dismantling and re-exporting refurbished components.
Industry estimates cited by Xinhua indicate that the global market for repaired and re-manufactured used aircraft components is substantial. Hainan's zero-tariff and import facilitation policies could give companies at the base a competitive cost advantage in sourcing retired aircraft and exporting serviceable parts. The administration bureau said it expects the project to attract more aviation-related businesses to the island, supporting growth in logistics, component trading and maintenance services.
Aircraft dismantling and parts recycling is an established sector in the global aviation industry. The Aircraft Fleet Recycling Association, based in the United States, has promoted industry standards for environmentally responsible aircraft recycling since 2006. The European Union has developed regulations governing the disposal and recycling of end-of-life aircraft, including requirements for hazardous material handling and material recovery rates. Hainan's entry into this sector positions the province as a potential hub for aircraft lifecycle management in the Asia-Pacific region, where few dedicated large-scale dismantling facilities currently operate.
The launch follows a broader expansion of Hainan's aviation services since the free trade port's customs framework took effect. The one-stop maintenance base in Haikou already hosts aircraft repair and modification operations. China's commercial aircraft fleet, among the largest globally, has grown rapidly over the past decade. As older aircraft approach retirement age and new deliveries continue, dismantling and recycling capacity is expected to become increasingly necessary to manage end-of-life aircraft in an environmentally regulated manner.
Hainan's free trade port status, unique within China, has attracted a range of aviation and logistics investments since its full customs launch. The dismantling project represents the latest step in building an integrated aviation services industry on the island, from initial maintenance through to end-of-life recycling.
Sources: Xinhua
