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    China Business
     Jan 31, 2006
Airbus intends to build assembly plant in China

BEIJING - Airbus has confirmed plans to set up an assembly line in China this year, which is expected to build four A320 airplanes a month. The feasibility study report for the assembly line, a joint venture with China, is under assessment by the related government departments.

Airbus is considering the location of the new plant among the four cities of Shanghai, Tianjin, Xian, and Zhuhai, according to Gu Wei, an official with the public relations department of Airbus China, yet the final decision has not been made so far. At



present, Airbus has assembly plants in Germany and France. If the project is approved, the assembly line will be the first for Airbus outside Europe.

Gu also revealed that Airbus China will establish another parts and accessories center in Shanghai to provide accessories mainly for its two-aisle plane series, while the center in Beijing mainly supplies the accessories to single-aisle series such as A380. Sources with Airbus said that the company's procurement in China is expected to increase to US$60 million in 2007 and $120 million in 2010 from the present $15 million.

In recent years, Airbus has accelerated technology transfer in China and has set up an engineering technology center in Beijing for the design of A350 with the involvement from the Chinese side. In addition, Airbus has also cooperated with China in the production of A320 wings and will transfer its technology of wing production and the assembly line of A320 to China in three phases.

The building of the assembly plant in China marks Airbus' intention to explore the emerging markets in Asia and the Middle East. Airbus predicts that as many as 1,800 new planes will be delivered to China in the next 20 years, which means about 90 planes must be delivered each year. China is a market of extreme potential, and cooperation with China is of great significance to Airbus, said Gusthum Humbert, president and CEO of the company.

(Asia Pulse/XIC)

 

 
 



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