Airbus Plans Long-Term Presence in China, Starting with Tianjin

Airbus is stepping up its efforts to become a major player in the Chinese aerospace sector with the opening of its final assembly line for the A319 and A320 in Tianjin.

Late last month, the Airbus executive committee held its first official meeting in China, signalling to China's political and industry establishment how seriously Airbus takes its relationship with the emerging aerospace giant. CEO Thomas Enders says he also wanted his colleagues in Airbus's top management who travel less frequently to see for themselves how China is evolving.

Airbus is now firmly committed to multiply sourcing in China in the foreseeable future. The company spent only $60 million in the country last year, mostly for wing substructures or cabin floor outfitting. But its spending is to grow to $200 million in 2010, $450 million in 2015 and $1 billion in 2020.

In addition to the Tianjin final assembly line, Airbus plans to integrate merging Chinese aerospace firms Avic 1 and Avic 2 into the portfolio of its A350XWB suppliers with a 5% workshare. Negotiations about exactly what the Chinese will contribute are supposed to be completed by the end of the year to allow for an on-time final design freeze of the new long-haul jet.