Boeing on Friday signed $500 million worth of contracts with Chinese companies to produce airplane components.

The deals include the first contracts to produce parts for the B747-8 aircraft, due to roll out of the factory in about one and a half years.

Xi'an Aircraft Industry (Group) Co Ltd, a company affiliated with the China Aviation Industry Corp I (AVIC I), will produce in-board wing flaps for the B747-8. The wing flaps are the largest components Boeing is sourcing from China.

Chengdu Aircraft Industry (Group) Co, also an AVIC I company, will provide the B747-8 ailerons and spoilers.

China is the exclusive supplier to both programs.

Contracts were also signed for B787 composite parts to be built by Hafei Aviation Industry Co Ltd, a company affiliated with AVIC II.

BHA Aero Composites Co Ltd in Tianjin will supply composite panels for the B787 vertical fin.

BHA is a joint venture of Boeing, Hexcel and AVIC I for secondary composite structures and interior parts. Boeing has a 40 percent stake in BHA.

"China's outstanding technological capabilities and resources make these suppliers ideal partners. China has an important role in all Boeing models," said Carolyn Corvi, Boeing Commercial Airplanes vice-president and general manager of airplane programs.

With the new agreements, Boeing and its suppliers now hold contracts valued at $2.5 billion with Chinese companies. Airbus' subcontract volume in China will exceed $60 million this year.

"While trying to become a world leading regional aircraft manufacturer, we are also working hard to become a world leading supplier for large aircraft manufacturing," said Wang Yawei, AVIC I's vice-president for commercial aircraft.

AVIC I is assembling the ARJ 21, a turbo fan regional jet developed using Chinese technology.

(China Daily 06/30/2007 page10)

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