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Airbus to Double Purchases in China (Oct. 12)

Airbus has announced plans to further increase its procurement from China, making it reach $120 million (U.S.) by 2010, double the target for 2007.

Airbus has already committed to increase its industrial procurement from Chinese suppliers from today’s level of $15 million to $60 million by 2007. The contracts to achieve this goal have all been signed.

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

Airbus’ industrial cooperation with China entered a new stage this year. In June, Airbus reached an agreement with China Aviation Industry Corporation I (AVIC I) on subcontracting projects worth $100 million to Chinese manufacturers. This is the first time for Airbus to involve China in producing A380 components. Meanwhile, Airbus will allocate A330/A340 forward cargo door projects to Shenyang Aircraft Corporation, which is affiliated with AVIC I.

During the year, an A380 Roll-on and Roll-off vessel built by Jinling Shipyard was delivered. Shenyang Aircraft Corporation delivered the 3000th A320 exit emergency door. The Chengdu Aircraft Corporation delivered the company’s first parts made for the nose section of Airbus A320 family aircraft. It also delivered the 400th rear passenger door for the world's best selling single-aisle aircraft family.

Since 1985, total value of projects subcontracted by Airbus to Chinese manufacturers has exceeded $500 million. Since September 2002, Airbus has intensified cooperation with China, signing contracts worth $350 million with Chinese manufacturers. Today, some 3,500 Airbus aircraft are in operation worldwide, and over a quarter of the Airbus worldwide fleet has components produced in China.

Airbus’ business in China has been steadily expanding since it first entered the country in 1985. The Airbus fleet in service in the Chinese mainland, Hong Kong and Macao has grown to more than 250 today from just 29 in 1995. A world-class training and support centre, which represents an $80 million investment by Airbus, is fully operational in Beijing.

Airbus is a leading aircraft manufacturer with the most modern and comprehensive family of airliners on the market. They range in capacity from 100 to more than 500 seats and incorporate the latest state-of-the-art technologies. Airbus has delivered more than 3,500 aircraft to some 260 customers and operators worldwide, and boasts a healthy delivery backlog of some 1,400 aircraft, which, at current rates, represents close to five years of production.

With an annual turnover of EUR 19.2 billion in 2003, Airbus is a global company with design and manufacturing facilities in France, Germany, the UK and Spain, as well as subsidiaries in the US, China and Japan. Headquartered in Toulouse, France, Airbus is an EADS joint Company with BAE Systems.

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Airbus to Significantly Increase Procurement from China