Related News
Airbus ambitions flying high at Chinese factory
Print Edition
In a series of vast hangars, dozens of Chinese technicians swarm over fuselages of Airbus A320 planes, foot soldiers in the battle to dominate what will become the world’s largest aircraft market.
The nearly completed aircraft at the Airbus assembly plant in the northern city of Tianjin, an hour outside Beijing, are resplendent in the livery of their Chinese airline buyers.
Since it opened in 2008, the plant has effectively acted as a showcase for Airbus’s wares and given the European manufacturer an advantage over US arch-rival Boeing to dominate Chinese aircraft sales, Airbus officials said.
Early controversy over technology transfer, the safety of the aircraft assembled at the plant and comparatively lower salaries of Chinese workers appears to be forgotten.
Now negotiations to extend the joint venture beyond its original 10-year shelf-life are entering the final stages.
“The Tianjin site is an expensive investment, but you have to have a global vision,” said Airbus China president Eric Chen.
“Since we decided to set up here, our market share in China has gone from 25 to 50 percent,” he told journalists on a visit to the plant, the only Airbus assembly plant outside Europe.
Some 20 percent of the worldwide production of Airbus already goes to China.
Airbus still lags Boeing in final deliveries in China, sending 133 aircraft to clients last year, 10 fewer than the US firm.
But its 1,000th Chinese delivery took place on December 23, 28 years after the first in 1985. Now it is aiming to achieve its second 1,000 by 2020.
It is a conservative goal given the boom in Chinese air traffic, Chen said. According to Boeing’s projections, the Chinese civil aviation fleet will triple over the next 20 years.
Airbus only started winning large Chinese orders after the memorandum of understanding for the Tianjin plant was agreed in 2005, Chen said.
“This is what has made the difference” in the fight against Boeing, he added.
Around 160 medium-range A320 aircraft have so far been assembled in Tianjin, which now produces four a month, and there are plans to adapt it to produce the more fuel-efficient A320neo aircraft in the future.
On opening it had 133 foreign employees. Now there are 32.
Will Horton, a senior analyst for CAPA Centre of Aviation in Hong Kong, said it was a mutually beneficial relationship.
“Airbus is growing its share of the Chinese market, and China rightfully sees pride and value in a local assembly line.”
On Wednesday, Airbus reported net profit of 1.5 billion euros (US$2.05 billion) for last year, up 22 percent. It said it took orders worth 218.7 billion euros, with its global order book now worth a record 686.7 billion euros.
Airbus has a 51 percent share in the venture and a consortium of Chinese investors, including state-owned aircraft manufacturer AVIC, holds 49 percent.
The deal was originally agreed to 2016. Chen said he was “confident” a new deal would be reached in time for signing when Chinese President Xi Jinping visits France in late March.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
