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Airbus to Expand Procurement from China

Airbus announced plans on October 10 to increase procurement from China, raising the annual figure to US$120 million by 2010, double the target for 2007.

The French aviation giant had previously inked contracts to increase industrial procurement from Chinese suppliers from today's level of around US$15 million to US$60 million by 2007.

Five Chinese companies are already involved in making parts for Airbus aircraft: the Chengdu Aircraft Corporation, Shenyang Aircraft Corporation, Xi'an Aircraft Company, Hong Yuan Aviation Forging and Casting and Guizhou Aviation Industrial Group.

Airbus reached an agreement with the China Aviation Industry Corporation I (AVIC I) on subcontracting projects worth US$100 to Chinese manufacturers, a deal that marks the first time Airbus has allotted A380 component production to China. Meanwhile, Airbus will give A330 and A340 forward cargo door projects to Shenyang Aircraft Corporation, which is affiliated with AVIC I.

Early this year, an A380 roll-on and roll-off vessel built by Jinling Shipyard was delivered, while Shenyang Aircraft delivered its 3,000th A320 emergency exit door. Chengdu Aircraft delivered the company's first parts made for the nose section of the Airbus A320 family, as well as its 400th rear passenger door for the same line.

Since 1985, the total value of projects Airbus has subcontracted to Chinese manufacturers has exceeded US$500 million. The company began stepping up its cooperation with China in September 2002, and today more than a quarter of the 3,500 Airbus aircraft in operation worldwide are built with components produced in China.

(Xinhua News Agency October 11, 2004)

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