As anticipated, Boeing’s China deal goes beyond a completion and delivery centre for 737s in the PRC, securing orders and commitments for 250 of the single aisle jets and 50 unspecified wide body airliners.
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The announcement of the partnership between Boeing and the Commercial Aircraft Corporation of China was made during the visit Wednesday of Chinese President Xi Jinping to Boeing’s Everett plant. The new factory was seen protecting market share rather than expanding it, said Richard Aboulafia, an analyst at Teal Group. Under the framework of the MOU, Boeing and NDRC also announced a new initiative to turn agricultural waste in China into sustainable aviation biofuel. Boeing was careful to say that the final assembly plant in China “will not reduce 737 Program employment in Washington State”. “Most of the planes ordered will be for growth, and very few will be for replacement”.
But Boeing’s plans to raise 737 production from a current rate of 42 a month to 47 a month in 2017 and 52 a month in 2018.
“Boeing airplanes have played an important role in supporting the development of China’s aviation transportation for the past 40 years”, said Li Hai, president of China Aviation Supplies Holding Company.
“As we ramp up capabilities in China, including additional 737-related work, the actions that we’ll take are actions that will also allow us to grow jobs here in the United States”, Muilenburg said at an aerospace conference in Seattle organized by SAE worldwide.
Boeing Co has announced it reached a deal with China for 300 aircraft valued at almost $38bn. According to Boeing, Asia is expected to be the largest travel market in the world, growing at 6.1 percent annually, and has a demand for over 14,000 aircraft in the coming 20 years.
The aircraft assembly plant will be Boeing’s first non-US plant, and signals its intent to match its European rival Airbus’ Chinese presence.
Bloomberg adds that completion and deliver center of the 737 jets will be the first of its kind for Boeing that is outside the U.S.
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