Aircraft maker Airbus will set up an engineering center in China next year to further strengthen its Research & Development (R&D) strategy in addition to its significantly increasing procurement in China.

The center will employ 50 Chinese engineers next year and will employ around 200 people by the end of 2008.

"The move is a preparatory step to facilitate China to become a full risk-sharing partner in a future new Airbus program, with at least a 10 percent share," said Laurence Barron, Airbus China President in a press conference at the ongoing Zhuhai Airshow.

Although its location has not yet been decided, Beijing is considered as a possible choice.

This is the second major industry cooperation between the aircraft maker and the Chinese aviation industry since October.

On October 9, Airbus signed an agreement which targets an annual volume of US$120 million by 2010, double the target for 2007 and up US$105 million of today's level.

Also during the press conference, Airbus announced the signature of an agreement between Airbus and Xi'an Aircraft Corporation.

According to the agreement, Xi'an Aircraft Corporation (XAC) will become the sole supplier of electronics bay doors for the Airbus A320 Family aircraft by 2006.

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

To date, of the more than 3,500 Airbus aircraft in operation worldwide, over half have components produced in China.

Total value of projects subcontracted by Airbus to Chinese manufacturers has exceeded US$500 million since 1985.

Driven by China's continuing robust growth in gross domestic product and air traffic, Airbus's presence in the Chinese market has been increasing, with 50 new orders from Chinese airlines this year and more than 40 new Airbus aircrafts expected to be delivered to airlines in the Chinese mainland, Hong Kong and Macao in the near future.

"Our goal is to take at least a 50 percent market share in China," Barron said.

Last year, Airbus overtook its rival Boeing in global commercial plane deliveries.

(China Daily November 2, 2004)