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Airbus to ramp up sourcing in China to sell more jets

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posted on Aug, 17 2005 @ 09:22 AM
Airbus is trying to increase sales in China by boosting the level of outsourcing of parts that they are currently doing with that nation. Currently, they purchase only $15 million per year in parts from China but they hope to boost that to $60 million in 2007 and over $120 million three years later. They are especially looking at increasing the number of parts for the A380.


By increasing the sourcing of parts, especially for the A380 -- the new double-decker plane capable of carrying up to 555 passengers -- the European group hopes to better integrate the mainland market into its supply chain.

Already since the mid-1980s Chinese manufacturers have delivered to Airbus parts for doors, noses and wings valued at more than 500 million dollars, according to Xinhua news agency.

Five Chinese companies produce parts for Airbus planes, including emergency doors for A320s made by the Shenyang Aircraft Industrial (Group) Company and the main parts for the A320's nose by the Chengdu Aircraft Industrial (Group).

The consortium will also transfer technologies for producing entire A320 jet wings to China that will enable all the components to be produced in the country by 2007.

While Airbus planes are unlikely to be assembled in their entirety in China anytime soon, the building of major components would likely help Airbus capture a larger slice of the world's third largest aviation market.

Boeing currently holds market share in China, maybe this move will help Airbus to become the dominant player..

posted on Aug, 17 2005 @ 09:28 AM
Awesome and very large market to expand into.

posted on Aug, 17 2005 @ 09:35 AM
I'm suprised they're transferring whole wing technology out of Europe. As far as I knew the wing technology is the icing on the cake in industrial terms. Historically BAE, which owns 20% of Airbus Industrie, has fought hard for wing manufacturing to take place in its UK factories, allowing the 'glory' of the final assembly to take place in Toulouse, because this is the key industrial 'skill' associated with manufacturing an aircraft. Giving away the wings is giving away the family jewels and, if true, would mean something pretty significant is coming Airbus's way.

posted on Aug, 17 2005 @ 10:55 AM
I would think that this relates to A320's sold in the region, even if it doesn't it is still only on the A320, not the other types.

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