Boeing signs with Chinese suppliers new contracts worth half billion dollars
US aviation giant Boeing on Friday announced agreements with Chinese suppliers for the production of commercial aircraft parts and components, including the first firm contracts with Chinese suppliers to build parts for the Boeing 747-8 Intercontinental Passenger and Freighter aircraft.
The contracts are valued at an estimated $500 million and include the 747-8 inboard wing flaps with Xi'an Aircraft Industry (Group) Company Ltd. (XAC), and ailerons and spoilers with Chengdu Aircraft Industrial (Group) Co. Ltd. (CAC), both affiliated to China Aviation Industry Corporation I (AVIC I). Also signed were contracts for composite parts to be built by Hafei Aviation Industry Co., Ltd., an AVIC II-affiliated company, and composite panels for the vertical fin to be built by BHA Aero Composites Co., Ltd., an equity joint venture between Boeing, Hexcel Corp. and AVIC I.
“These contracts demonstrate Boeing's commitment to continued expansion of industrial cooperation with China. China's outstanding technological capabilities and resources make these suppliers ideal partners for the Boeing 787 and the 747-8, which ... offer airlines the lowest operating costs and best economics of any large passenger or freighter aircraft,” said Carolyn Corvi, Boeing Commercial Airplanes vice president and general manager of Airplane Programs. “We are honored to help Boeing build the 747-8 as it opens a new page for the long-term Boeing-XAC partnership,” said Meng Xiangkai, vice chairman of Xi'an Aircraft Industry (Group) Company Ltd.
Boeing and Boeing suppliers hold contracts totaling $2.5 billion with China's aviation industry. Boeing's industrial cooperation with China began in the mid-1970s. There are now 4,200 Boeing aircraft flying worldwide with major parts built and assembled by Chinese suppliers. Since the 1980s, Boeing has purchased more than one billion (US) dollars worth of aviation hardware from China. (people.com.cn)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.