China may build Airbus narrowbodies

Flight International Online news 10:00GMT:Airbus is to consider establishing a final assembly line for narrowbody aircraft in China under a memorandum of understanding (MOU) with the Chinese Government.

The MOU was signed yesterday with the National Development & Reform Commission of China (NDRC) to coincide with a visit to France by Chinese premier Wen Jiabao.

“The MoU sets the frame for a further upgrade of the co-operation between both parties,” Airbus says in a statement.

“It also describes the process to evaluate the fields of enhanced co-operation, including the possibility to establish a final assembly line for single-aisle aircraft in China.”

The MOU was signed shortly after Wen arrived in France for an official visit. During the visit China’s Government is expected to commit to a major bulk order for A320-family narrowbody aircraft on behalf of six of the country’s airlines.

Airbus has been progressively increasing its co-operative ties with China’s state-owned aerospace manufacturing groups and there are now five Chinese companies producing parts for its aircraft, namely Chengdu Aircraft, Hafei Aviation Industry, Hong Yuan Aviation Forging & Casting, Shenyang Aircraft and Xian Aircraft.

The European airframe manufacturer said last year that it planned to increase its procurement from China to $60 million worth of parts annually by 2007 and $120 million by 2010.

In addition to considering the establishment of a narrowbody assembly line in China Airbus has offered Chinese manufacturers up to 5% of the airframe of its new A350 widebody.

“This participation will include both design and manufacturing. The design will be performed by the Airbus Engineering Centre in China, and the manufacturing of the corresponding parts and components will be under the responsibility of the Chinese aviation industry, mainly AVIC I and AVIC II,” says Airbus.

Airbus president and CEO Gustav Humbert adds: “We are very pleased to enter into discussions about possible next steps of co-operation with our Chinese industrial partners who over the years have developed excellent industrial competences on which we can now draw.”