China’s President, Xi Jinping, arrived in Seattle Tuesday and is scheduled to visit the Boeing plant in Everett, Wash., Wednesday.
Advertisement
Xi is due to visit Boeing s main airplane factory in Washington state on Wednesday, before travelling in Washington DC the following day to meet President Barack Obama at the White House.
Boeing executives and officials from the Chinese firms could not immediately be reached for comment.
Boeing will still assemble all of its 737s destined for Chinese carriers at its factory in Renton, Washington, and then will fly them to the new center in China for the installation of interiors and painting of exteriors, as well as flight tests and final delivery.
Boeing will sell 300 aircraft to three Chinese firms and open a plant in China that will put the finishing touches on 737 jets – its first plant overseas as it looks to stay competitive in the region vs. European rival Airbus (OTCPK:EADSY).
Aside from selling planes to Chinese companies, Boeing will also be building an aircraft completion center in China, as part of its partnership with Commercial Aircraft. The 737 facility will be the first of its kind for the conglomerate outside the US. Boeing said China ordered 250 narrow body 737 aircraft and 50 wide body aircraft, according to a report by Business Insider.
The Chinese facility would complete and deliver 737s built at Boeing’s factory in the United States.
Boeing is finally going to China.
For the deal, it has signed an agreement with China Aviation Supplies Holding Company. According to a report at Leeham News, Boeing may face a production gap for its current version of the 737, and a significant order from China would help the firm plug that gap. It predicts airlines will need to add 6,330 new planes worth US$950 billion (RM4.13 trillion) by 2034 to keep pace with travel growth.
China’s state planning agency also signed an agreement with Boeing to promote cooperation in the aviation industry, Xinhua said.
Machinist union members who say they stand to lose work to China planned to protest on Wednesday.
So far this year, Chinese customers have taken delivery of about 25 percent of Boeing’s commercial airplane production.
Advertisement
With China set to become the world’s largest domestic air travel market, Boeing has been laying the foundations to expand its operations in the country for some time, creating the joint venture Boeing Tianjin Composites Co with the state-owned Aviation Industry Corporation of China in 1999.
