The Strategist

Boeing: Made in China


09/24/2015 - 15:35



China and Boeing signed the largest in the company's history deal for the supply of 300 civilian aircraft, components for which the final fine-tuning are planned to be made in China.



Aero Icarus
Aero Icarus
The American corporation Boeing announced that it has signed a contract with China for the supply of single-aisle Boeing-737 and wide-body aircraft 737-800 NG, which will be assembled in the USA with components manufactured by joint ventures in China.

Chinese companies have placed orders for 300 Boeing aircraft during the visit of Chinese President Xi Jinping to the United States, according to the Chinese state inform agency "Xinhua".

In addition, Commercial Aircraft Corp. of China (Comac) has signed an agreement with Boeing on the construction of China's enterprises, which will do finishing works on the production of 737 series aircrafts.

The plant in China will be the first outside the United States for Boeing.

Experts point out that the transfer of part of the work in China will relieve the manufacturing facilities in the US, and then the company will be able to increase the output of the model aircraft from 42 to 60 per year. Model 737 is the most popular jet airliner in the history of passenger aircraft: in total since 1967, Boeing has produced more than 8 thousand of such aircrafts.

The main Boeing’s competitor, the European concern Airbus, already has a plant in Tianjin, China.

The furious workers' union at Boeing expressed their displeasure, but the corporation hastened to assure that production and employment at its factories in the United States will not be reduced.
 
Boeing’s leaders did not hide their joy: this is one of the largest contracts in the history of the corporation and a record for the last decade.

Signing a contract for $ 38 billion at list prices took place with the participation of the leader of China, Xi Jinping, who visited the US assembly lines of Boeing 777, 747-8, and 787 Dreamliner.

In the future, aircrafts from components made in China will be assembled on these lines in the United States.

At the same time, Boeing and Chinese company Commercial Aircraft Corporation of China, Ltd. (COMAC) announced that they are going to partner to create final assembly lines in China, that is, interior and painting, for Boeing-737 for the Chinese customers.

Simultaneously, it is planned to increase production of Boeing-737 final assembly in Renton, Washington.

Boeing, COMAC and Chinese officials are now working on the final agreement on the contract.

Boeing currently produces narrow-body Boeing-737 of a record pace (to 42 aircraft per month) and is planning to increase production to 47 aircraft per month in 2017 and 52 aircraft per month in 2018 with China’s assistance.  

Boeing delivers aircraft to China since 1972, when President Richard Nixon arrived in Beijing on Air Force One Boeing-707.

Now, more than 50% of China's aircraft fleet consists of Boeing. Over the next 20 years, China will become the largest market for commercial aircraft with a capacity of 6,330 thousand new aircraft at $ 950 billion, predicts Boeing.

source: bloomberg.com




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