Boeing yesterday signed US$600 million worth of contracts with
Chinese companies for the production of commercial airplane
components.
Deals included the first-ever confirmed agreement to produce
parts for the brand new Boeing 787 Dreamliner.
Boeing finalized contracts for the 787 composite rudder, the 737
forward entry door, and the 737 automatic over-wing exit door with
the Chengdu Aircraft Industrial (Group) Co Ltd, an affiliate of the
China Aviation Industry Corporation I (AVIC
I).
Also sealed was the deal for the 787 wing-to-body fairing panels
with the Hafei Aviation Industry Co, Ltd, part of the China
Aviation Industry Corporation II (AVIC II).
"AVIC I is keen to further its long-standing partnership with
Boeing.?While strengthening our own aircraft building
capability with the ARJ 21 feederliner project, we hope to grow
into a global supplier for the international aircraft manufacturing
industry," Liu Gaozhuo, president of AVIC I, said.
Liu added that becoming the sole partner for components supply
with Boeing on the revolutionary 787 project was an endorsement of
China's aeronautics technology and manufacturing capability.
"Since large amount of new composite materials are used in the
787 Dreamliner, that imposes a higher demand on us as a components
supplier. It is surely a recognition of our technical capability,"
Liu said.
More than 3,500 Boeing airplanes - one third of Boeing's world
fleet - are assembled in China or have major parts that are
manufactured here.
Boeing Commercial Airplanes Vice President and General Manager
of Airplane Production Carolyn Corvi said that yesterday's
agreements showed China's growing role in Boeing's strategy of
global manufacturing and production outsourcing on the 787, 777,
747 and 737 airplane programs.
"China's aviation industry is providing outstanding
technological capabilities and resources that help us meet quality,
cost and delivery imperatives in our programs - particularly on the
new 787 project," she said.
Agreeing with Corvi, David Wang, president of Boeing China, said
it was natural for aircraft manufacturing to be a global industry,
instead of being limited to a single territory.
Because China boasts manufacturing facilities and a cheap,
educated workforce, it makes sense for both Boeing and Airbus to
shift some production into the country, Liao Quanwang, deputy
director of China Aviation Development Research Center, said.
Airbus, Boeing's main rival, has pledged to offer a 5 percent
risk-sharing partnership with China in its newly unveiled A350
project.
Both AVIC I and AVIC II disclosed that they were in negotiations
with Airbus on the A350 program. Deals might be concluded by the
end of this year, Xu Zhanbin, vice president of AVIC II, said.
Other contracts include a memorandum of agreement between the
Shenyang Aircraft Corporation, an AVIC I-affiliated company, and
Boeing signed yesterday for the construction of the 787 assembly
for its vertical fin.
BHA Aero Composite Parts Co Ltd signed memoranda of
understanding to supply interior panels for the 777 control cabin,
as well as wing-to-body fairing panels and the tail cone for the
Next-Generation 737 series. BHA is an equity-share joint venture
between Boeing, Hexcel Corp and AVIC I.
(China Daily June 3, 2005)
