Airbus Industrial Co-Operation in China

Industrial co-operation between Airbus and Chinese aviation industry dates back to 1985, when CAAC of Shanghai, now China Eastern Airlines, became the first carrier in China to operate the European consortium’ aircraft. Contracts for Chinese companies to build sections of Airbus aircraft followed, as did further orders from Chinese airlines. Aerospatiale, currently Airbus France, signed first product sub-contracting agreement in 1985 with Xi’an Aircraft Company on manufacturing and assembling access doors for Airbus A300/A310 wide-body aircraft.
   
In 2005, the Chinese manufacturers delivered $ 34.5 million worth of aircraft components to Airbus. The total value of industrial cooperation between Airbus and the Chinese aviation industry is expected to be near $ 200 million per year in 2010 and $ 450 million per year in 2015.

Major industrial cooperation sites in China include:

• Chengdu Aircraft Corporation is one of the two suppliers in the world for the rear passenger door of A320 aircraft.   The company is also manufacturing the main parts of A320 nose section, which includes floor grids section 11, nose landing gear (NLG) bay and frame 1.  The first ship sets of these parts were delivered to Airbus in June 2004.
• Shenyang Aircraft Corporation produces and assembles the emergency exit doors for A320 Family aircraft, and is the sole supplier of such parts in the world.   The company also manufactures fixed leading edges, wing inter-spar ribs for the wings of the A320 family and the A330 / A340 Cargo doors.
• Xi’an Aircraft Company currently makes electronics bay doors for Airbus A320 Family and A330/A340 Family aircraft.  The company also produces fixed trailing edges for the wings and wing box of the A320 Family aircraft, as well as brake blades and medium air duct for the A330/A340 Family aircraft.
• Shanghai Aircraft Manufacturing Factory (SAMF) (Shanghai) signed its first contract with Airbus in February 2006 to manufacture A320 Cargo Door Frame.
• Hong Yuan Aviation Forging & Casting (HYFC), based in Sanyuan County in Shan xi Province, is producing titanium-forging parts, which are used to mount aircraft power plants to wings.
• HAFEI Aviation Industry Co. Ltd. manufactures the HTP leading edge ribs and torsion box – CFRP details parts with monolithic technology, and A330/A340 spar couplings.

As regards technology transfer, Airbus has undertaken to transfer to China the technology required for the manufacturing of the wing structure of the A320 family aircraft. This started in the year 2000 with AVIC I in Xi’an and Shenyang and the first two phases included manufacture of the fixed leading and trailing edges. This cooperation will be accelerated with Airbus placing more engineers into the Chinese factories, and moving to Phase III, which is the manufacture of the wing box. It is a major project since Airbus wings are the most advanced in the world and this family is the best selling aircraft in the world.  On 24th July 2007, the first China-made A319 wing box was delivered to Airbus by XAC.

On 9th November 2005, China Aviation Industry Corporation I (AVIC 1) and Airbus signed a protocol in London during Chinese President Hu Jintao’s official visit to Britain to confirm the extension of their cooperation in activities to produce A320 Family wing boxes in China. The protocol refers to the initial contract, with a projected total value of over US$ 500 million, signed in Beijing earlier between Airbus and AVIC I, which committed the parties to the third phase of the A320 Family Wing Cooperation Programme, comprising the production of wing boxes and now also including the management of a second tier supply chain. 

On 21st July 2005, Airbus (Beijing) Engineering Centre was formally inaugurated in Beijing. The Airbus (Beijing) Engineering Centre is located in the Tianzhu Airport Industrial Zone, adjacent to the offices of Airbus China. The Centre will perform design work for Airbus current and future Aircraft programmes.

On 31st October 2006, China Aviation Industry Corporation II (AVIC II) and China Aviation Industry Corporation I (AVIC I) signed a joint venture contract with Airbus on the setting up of the Airbus (Beijng) Engineering Centre joint venture. Upon creation of the joint venture, the three parties have agreed that Airbus will hold 70% of the shares, while AVIC II will hold 25% and AVIC I 5%.

The Engineering Center has so far recruited some 125 Chinese engineers and this number will grow to 200 by end 2008.

The setting up of the centre is intended to enhance and develop a close relationship between Airbus and the Chinese aerospace industry, with a view to China becoming a full risk-sharing partner with up to 10% of airframe work share in a future Airbus programme for new generation aircraft. A risk-sharing partner takes complete responsibility for a part of a programme, from design to manufacturing, including the corresponding investment and profit sharing.

Airbus not only works closely with Chinese aviation manufacturers, but also encourages other foreign companies to get involved in industrial cooperation with China. For instance, the Jinling Shipyard has built a roll-on and roll-off vessel for the transportation of the A380 components. The ship owner is F.R.E.T/CETAM.  China’s involvement in the A380 program marked a new significant milestone in the cooperation between Airbus and China. 

The National Development and Reform Commission of China (NDRC) and Airbus signed a Memorandum of Understanding (MOU) on 4th December 2005 when the Chinese Premier Wen Jiabao visited Airbus Headquarter in Toulouse, France. The MOU described the process to evaluate the new fields of enhanced cooperation, including the possibility to establish a Final Assembly Line for Airbus single aisle aircraft in China.

On 8th June 2006, NDRC and Airbus announced that the site for the potential A320 Family FAL in China would be in Tianjin Binhai New Coastal District. On 26th October 2006, a Framework Agreement was signed between Airbus and a Chinese Consortium comprising Tianjin Free Trade Zone (TJFTZ), China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II) in Beijing.  Under the Framework Agreement, Airbus agreed in principle to set up an A320 Family Final Assembly Line in Tianjin, and the parties settled the main details of the corresponding joint venture to be created between the Chinese Consortium and Airbus.

The Feasibility Study Report (FSR) was jointly conducted and signed by the Chinese Consortium and Airbus in January 2007 and was then submitted to NDRC for approval.

On May 15th, construction started on the Airbus A320 Family Final Assembly Line (FAL) in Tianjin, following the approval by the State Council of the Feasibility Study Report for the project on 9th May. 

On 28th June 2007, the joint venture contract for the Airbus A320 Family Final Assembly Line (FAL) in Tianjin was signed today in Beijing between the Chinese Consortium and Airbus in the Great Hall of the People. Upon the creation of the joint venture, Airbus will hold 51 per cent of the shares, while the Chinese Consortium will hold 49 per cent.

The setting up of the FAL in China includes the construction of dedicated hangars, office buildings, delivery centre and related facilities, including electricity, gas, water and fuel supply systems. The FAL in Tianjin will be identical to the latest state-of-the-art Airbus single aisle final assembly line in Hamburg, Germany. The aircraft will be assembled and delivered in China to the same standards as those assembled and delivered in Europe.

The Final Assembly Line in Tianjin aims to ramp up production to reach four aircraft per month in 2011. An Airbus delivery centre will also be set up by Airbus in Tianjin.

Today, more than 5,000 Airbus aircraft are in operation with some 290 operators worldwide. Over half of the Airbus worldwide fleet has components produced in China. Airbus is looking forward to carrying out more projects with Chinese aviation industry partners. 

On 26th November 2007, Airbus signed a memorandum of understanding (MOU) with the National Development and Reform Commission (NDRC) to formalise the commitment of allocating five per cent of the A350 XWB airframe to the Chinese aviation industry. According to the MOU on Strengthening Industrial Cooperation through A350 XWB, NDRC and Airbus will carry out high-level industrial cooperation on A350 XWB development and manufacturing work, in order to enhance a closer strategic cooperation relationship between Airbus and the Chinese aviation industry. Airbus confirms its intent to manufacture five per cent of the airframe of the A350 XWB aircraft in China. Airbus will actively involve Chinese enterprises in the A350XWB project to develop the current cooperation and prepare for further possible cooperation for future programmes.

On 26th November 2007, Airbus signed a Heads of Agreement (HOA) with China Aviation Industry Corporation II (AVIC II) to develop a new cooperation model to support the A350XWB industrialization. According to the HOA between Airbus and AVIC II, a joint venture manufacturing centre is to be established in Harbin by Airbus and Harfei Aviation Industry Company Ltd, a subsidiary of AVIC II, to produce composite material parts and components for Airbus A350XWB. The manufacturing centre is expected to be established in the first quarter of 2009. The production scale of the manufacturing centre shall correspond to the work packages for the A350XWB allocated to the manufacturing centre and may be enlarged based on the future Business Plan.

For more information, please contact:
Airbus China Communications Department
Lindsey Mi, Robin Tao, Amelia Xu
Tel: 86 10 80486161   Fax: 86 10 80486162/63
Email: pr@airbus-china.cn
Website: www.airbus.com
Picture Link: www. airbus-china.cn