European manufacturer steps up outsourcing push in China
Airbus has unveiled plans to open an engineering centre in China as part of a plan to accelerate the transfer of technology and step up outsourcing to local manufacturers.
The centre will open next year with 50 Chinese engineers and employ 200 engineers by 2008. Airbus China president Laurence Barron says the centre will "facilitate China becoming a full risk-sharing partner in a future Airbus programme, having at least a 10% share".
At Zhuhai, Airbus awarded Xi'an Aircraft a contract for 1,500 additional Airbus A320 family electronics bay doors, making it the sole supplier of the component. EADS subsidiary Sogerma will be phased out as a supplier of A320 electronics bay doors as Xi'an steps up its production from 12 to 36 shipsets a month by 2006.
China has a burgeoning Airbus fleet, with over 160 aircraft now in service - the latest being the first of four A319s for Chengdu-based Sichuan Airlines, equipped with specially modified International Aero Engines V2527-A5s for operations into high-altitude airports in the west of the country.
Last month Airbus pledged to double annual procurement from China from $60 million in 2007 to $120 million in 2010. Barron says the additional $60 million in supplier contracts has not yet been defined, but will include "substantial A380 work".
"Boeing has chosen Japan as its industrial partner for the 7E7. In the case of Airbus we wish it to be with China," Barron adds.
But a Boeing source points out its annual procurement from China far exceeds that of Airbus. This year Boeing signed memoranda of understanding with Chengdu Aircraft for the 7E7 rudder and with Harbin Aircraft for 7E7 composite and metal components. Boeing China president David Wong says: "The final contracts will be signed this year."
Sources say other Chinese manufacturers are in line to supply small 7E7 components. The supplier deals should help Airbus and Boeing cement A380 and 7E7 orders from China, which could occur by year-end. Airbus now claims just over 30% of the Chinese market, compared with 7% in 1995.
Source: Flight International
