Boeing Ready to Move 737 Production to China

[blue marlin]

The US-based aerospace manufacturer is looking to shift some of its production work to China, where it expects the number of commercial airplanes operating in the country to almost triple over the next two decades.

Aerospace company Boeing is working out plans to move final production work on its 737 to a new factory in China, in anticipation of a continuing increase in demand from China for new airplanes, reported industry magazine Aviation Week on Friday.


According to the magazine's sources, the deal to move some production to China will be announced when Chinese President Xi Jinping stops in Seattle, Washington on September 23, as part of his first state visit to the US.

Boeing's 737 Next Generation airplane is currently manufactured at the company's US production facility based at Renton, outside Seattle, and the manufacturer is expecting the president's visit to coincide with a boost in orders for planes from Chinese air carriers.


Boeing declined to comment on the Aviation Week report, which reveals plans for the new facility in China to take unfinished 737 aircraft from the assembly line in Renton, and carry out painting, flight testing, delivery certification and customer acceptance in order to complete the aircraft production, a process which can take up to six weeks.

The development is an extension of the already productive relationship between Boeing and Chinese manufacturing; factories in China make parts for the 747 and the 787, as well as components for the 737 Next Generation. The current model is the third generation derivative of Boeing 737, the world's best-selling narrow-body airliner, which followed the 737 Classic into production in 1996.


Last month Boeing released its projections for the Chinese airliner market over the next 20 years, which predicts the Chinese fleet to almost triple by 2034, from 2,570 airplanes in 2014 to 7,210 airplanes in 2034.


"China's aviation market is incredibly dynamic, from its leading airlines to its startups and low-cost carriers," said Ihssane Mounir, Boeing's vice president of Sales and Marketing for Northeast Asia.

The projected demand for 6,330 new airplanes includes 4,630 single-aisle aircraft like the 737, which "help Chinese carriers connect and stimulate growth along the Economic Belt as part of the One Belt, One Road Strategy," said Boeing, who anticipate a particular rise in demand from low-cost carriers.

While Chinese low-cost airlines are currently responsible for about 8 percent of single-aisle market demand, explained the manufacturer, this is expected to rise to 25-30 percent of demand by 2034, driven by China's growing middle-class population, new visa policies and the underlying strength of its economic growth.

 

[amoy]

Boeing to sell 300 planes to China

Boeing: Don't worry about China's economy — they're
going to buy nearly $1 trillion worth of planes

Boeing Co will sell China 300 airplanes and build a 737 aircraft completion center in the country, Xinhua news agency announced Wednesday. The deal was reached during Chinese President Xi Jinping's current state visit to the United States.

China is Boeing's largest international market, accounting for about a quarter of Boeing deliveries so far this year. The airplanes in the latest deal are worth $38 billion at list prices. Xi, who arrived in Seattle on Tuesday aboard a Boeing 747-400 Air China plane, visited Boeing's Paine Field factory on Wednesday.

Commercial Aircraft Corp of China Ltd, also known as Comac, signed a cooperative agreement with Boeing for the center, Xinhua reported without elaborating.

"Boeing airplanes have played an important role in supporting the development of China's aviationtransportation for the past 40 years," said Li Hai, president of China Aviation Supplies Holding Company. "These additional airplanes will further help connect the people in China and around the world."

The package includes 240 airplanes for Chinese airlines, including 190 737s and 50 wide-body aircraft, and another 60 737s for leasing companies ICBC and CDB Leasing.

"China is a critical international market for commercial airplanes," said Boeing Commercial Airplanes President and CEO Raymond Conner. "We thank our Chinese customers for selecting fuel-efficient Boeing airplanes to meet their fleet growth and expansion."

The 737 completion and delivery center will be the first facility of its kind outside the US for Chicago-based Boeing. European plane maker Airbus Group SE, which competes with Boeing for plane orders, already has a similar facility in Tianjin, near Beijing. Airbus signed an agreement in July to set up its second Chinese plant.

In two decades, China is expected to displace the US as the world's biggest aircraft and travel market, according to Boeing. It predicts airlines will need to add 6,330 new planes worth $950 billion by 2034 to keep pace with travel growth.

China will become the world's biggest air passenger market by 2034, with one in five passengers traveling to, from or within the country, the International Air Transport Association said in April. The number of air passengers traveling to, from and within China is set to nearly triple by 2034 to some 1.3 billion, surpassing an expected 1.2 billion for the United States, according to official estimates.