BEIJING - Boeing and Shanghai Aircraft Manufacturing Company (SAMC) signed a 10-year contract to manufacture 737 horizontal stabilizers on Sept 21. This is the largest and longest contract agreement between Boeing and a Chinese aerospace supplier.

Based in Shanghai, SAMC focuses on manufacturing, final assembly, parts assembly, delivery, maintenance of commercial aircraft parts, pilot flight and other services.

It signed its first contract with Boeing in 1996 and delivered its first 737 horizontal stabilizer in 1999.

AVIC International Holding Corporation, which is also a signatory to the contract, supplies structural components and assemblies for Boeing's commercial airplanes including the 737.

Boeing forecasts global demand over the next 20 years for more than 23,000 single-aisle commercial airplanes, valued at nearly $2 trillion, and demand in China for 3,550 single-aisle airplanes.

Boeing has been the single largest purchaser of made-in-China aviation parts, committing hundreds of millions of dollars annually to dozens of suppliers. Today, some 6,000 Boeing airplanes fly throughout the world with integrated China-built parts and assemblies.