China reveals more details of "Jumbo" aircraft manufacturing plan

[Pieter C. 5]

China plans to challenge Boeing, Airbus by manufacturing large aircraft

 

Tuesday March 13, 2007

China plans to enter the large aircraft manufacturing fray, announcing yesterday via the official state Xinhua News Agency that the "dream" of challenging Boeing and Airbus with domestically produced jets "is expected to come true by 2020 if everything goes well."

 

Liu Daxiang, deputy head of the Dept. of Science and Technology Development at China Aviation Industry Corp. I, said, "We are now fairly well conditioned for making large aircraft with the sound support from growing national economic strength, technological development and experience in manufacturing."

 

AVIC I touted development of the ARJ-21 regional jet, which has garnered 70 orders with first flight expected later this year and first delivery scheduled in the 2009 third quarter, as helping "Chinese experts and technicians prepare themselves in technology and management" for building larger aircraft.

 

Liu added that domestic companies already supplying parts to Boeing and Airbus "will be capable of contributing to the development of the large aircraft." He noted that cooperation with companies outside China is possible but emphasized that China would be the "sole intellectual property right holder" on aircraft it develops.

 

The Chinese government estimates the nation needs 1,600 new commercial aircraft valued at $150 billion by 2020 and that the country will become the world's second-largest air market behind the US by 2030.

 

[Pieter C. 5]

China reveals more details of 'jumbo aircraft' manufacturing plan

 

Tuesday April 10, 2007

China unveiled more details of its plan to build "jumbo aircraft," which it defines as passenger jets with more than 150 seats or freighters with a takeoff weight of more than 100 tons, saying it will begin assembling the planes in 10 or more years in Shanghai and Xi'an, according to the official state Xinhua News Agency.

 

The large aircraft manufacturing project, revealed last moonth, is "still in the initial planning phase" and will "initially target the domestic market," Xinhua said. "But the ultimate aim is to compete with Boeing and Airbus on the international market," Jin Qiansheng, deputy director of the administrative committee of Xi'an Yanliang State Aviation High-Tech Industry Base, was quoted as saying.

 

Jin noted that Xi'an, the capital of Shaanxi Province, will be the base for 50% of the manufacturing on the passenger aircraft and 60% of the work on freighters, with the remaining work in Shanghai.

 

He also said private-sector suppliers, both Chinese and foreign, will be part of the manufacturing process. "The involvement of foreign and domestic private aircraft producers is essential to China's jumbo plane project," he said.

 

China Aviation Industry Corp. I, the state-owned aircraft manufacturer likely to play a large role in developing the aircraft, said over the weekend it has established a finance unit with registered capital of CNY1 billion ($129.3 million) to fund future development. "We have more or less finished building our financial platform," AVIC I GM Zuo Ming said, according to Xinhua, which described the new unit as "a nonbank financial institution made up of the reshuffled finance firms of two AVIC I subsidiaries, Xi'an Aircraft Industry Co. Ltd. and Guizhou Aviation Industry Co. Ltd."

 

AVIC I is building ARJ21 regional jets, for which it claims to have more than 70 orders, and has produced 1,500 aircraft, most of which are defense-related. It said sales have grown for six consecutive years, with revenue reaching CNY80 billion and profits totaling CNY3 billion last year.

 

Boeing has said it takes the potential challenge posed by China seriously. During a recent visit to China, Commercial Airplanes President Scott Carson told China National Radio that the world's most populous nation will need 2,600 new aircraft valued at $213 billion through 2024, which would triple the country's collective airline fleet to more than 3,200 units.

 

 

[Pieter C. 5]

Airbus Breaks Ground On China A320 Assembly Plant

 

May 15, 2007

Airbus said on Tuesday that it and Chinese government agencies would spend several hundred million dollars each on a plant to assemble Airbus A320 aircraft in China. China ordered 150 Airbus passenger jets in a USD$9.7 billion deal last year.

 

"This is the first big milestone for future cooperation," Fabrice Bregier, chief operating officer at Airbus, told reporters at the ground-breaking ceremony for the plant in Tianjin's Binhai industrial area.

 

He did not provide a breakdown of the investments or identify how many Chinese partners would invest in the plant.

 

The first planes are expected to be produced in 2009, and the plant is projected to produce about 50 planes per year by 2011.

 

China has previously announced plans to build its own large passenger jets, a move that could challenge both Airbus and rival Boeing.

 

"Clearly we are open to discussions with Chinese industry" for development of China's own long-haul aircraft, Bregier said when asked about China's ambitions. He gave no further details.

 

(Reuters)

 

[Andrew Lim 1]

Building plant in China? Another one of Airbus's cost cutting exercise?

[Pieter C. 5]

Airbus Confirms Raising A320 Output

 

May 17, 2007

Airbus said on Wednesday that it would raise production of its A320 family of passenger airliners, helped by a new factory in China, and may also increase output of A330/A340 models.

 

In a statement, Airbus said it would raise A320 output to 40 planes a month by end 2009 from a current production level of 32. Airbus officials have previously said the change was planned due to strong demand.

 

Airbus said it was also considering lifting production of its A330/A340 aircraft above and beyond current plans to raise output from seven planes a month now to nine in 2009.

 

The A320s are currently built in Toulouse, France, and Hamburg, Germany.

 

Airbus said some of the additional aircraft would be built at a factory in Tianjin, China, due to come on stream in mid-2008. It said the factory would produce two planes a month by the end of 2009, rising to four a month by 2011.

 

The news comes at a time when Airbus is facing sporadic strikes over plans to cut around 10,000 jobs in Europe.

 

(Reuters)

 

[Seth K 3]

I bet China will force their airlines to buy it. God, such a young baby in aviation, already go for the big one

[Rozhan 0]

Many years ago, 'Made in China' often means inferior quality, and may apply to some things until today. Over the years, with multinationals setting up plants there, bringing along with them the quality culture, I believe China is poised to become the source of good quality products. I think they have succeeded in some areas. Maybe one day 'Made in China' will be viewed at the same level as 'Made in Japan'.

 

Only problem is that they are also very, very good in making counterfeit products!

Edited May 18, 2007 by Rozhan

[BC Tam 2]

..... I believe China is poised to become the source of good quality products ..... Maybe one day 'Made in China' will be viewed at the same level as 'Made in Japan' .....

I certainly concur with that view, though admittedly it's still mostly low end goods we see here. But they WILL improve, the laws of survival will make sure of that.

 

Incidentally, it wasn't that long ago, well within my lifetime anyway, that "made in Japan" was commomly uttered as a description for inferior quality products. And where are we now ?!!

[S V Choong 4]

I bet China will force their airlines to buy it. God, such a young baby in aviation, already go for the big one

 

If they "force" their airlines to buy it, they have a good reason to do it. It will provide jobs to Chinese workers and improving local living standards. The same reason why most US and Japanese airlines are using Boeings.

 

Was told by the older generations that "made in Japan" used to be really low quality products - especially in the Post WWII period up to the 70s. Just take a look at the Japanese products in the market place today...... I am quite happy to buy Made in Japan products than any made. Chinese product continues to excel, I guess the question should be: when will Made in malaysia products will reach the japanese quality level. Thats the big question mark.