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Airbus to ramp up sourcing in China
(AFP)
Updated: 2005-08-17 15:36

Airbus says it wants to ramp up the construction of plane parts in China to help spur sales in the country it predicts will need 200 jumbo jets like the A380 over the next 20 years, AFP reported.

An Airbus 330-200 ordered by the China Southern Airline arrives at a Guangzhou airport in this photo taken on February 28, 2005. [newsphoto]

The European aerospace consortium also reiterated its projection that it will purchase 60 million dollars worth of components in China in 2007, rising to 120 million dollars three years later.

"Because we have only 15 million dollars in sourcing in China we would like to increase this number," Airbus spokesman Gu Wei told AFP, adding that proposals being considered included establishing more joint ventures in China.

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 China 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.

Airbus was projecting China will need 200 super jumbos like the A380 over the next two decades and it made economic sense for the company to source more on the mainland, Gu said.

Airbus has sold more than 200 planes in China since 1985 and so far this year has received orders for 59 aircraft from five Chinese airlines, accounting for 20 percent of its total orders.

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