Harris and Trump make final push in must-win Pennsylvania    Drones and snipers on standby to protect Arizona vote-counters    India's Modi condemns violence after Canada temple incident    Elon Musk can keep giving $1m to voters, judge rules    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    Tourism Development Fund launches "Tourism Empowerment" programs to enhance sustainable growth of SMEs    Saudi crown prince, Tunisian president review bilateral relations in phone call    SFDA Chief visits premier biotechnology and medical firms in China    Al-Khereiji: Collective action in combating terrorism is a must for achieving stability and prosperity    Saudi Awwal Bank becomes the Kingdom's first bank obtaining ISO certification for quality management system in operations    10 cooperation agreements signed during Saudi-Turkish Business Forum in Istanbul    Saudi Arabia's non-oil revenues grow 6% in 9 months while Q3 budget posts SR30 billion deficit    Quincy Jones, titan of US music, dies aged 91    Enhancing zakat, tax, and customs compliance takes center stage at the Zakat, Tax, and Customs Conference 2024    Neymar expected to join Al Hilal squad for AFC clash against Esteghlal, says coach Jesus    Al Qadsiah secure 2-0 victory over Al Ettifaq in first Eastern Derby since 2021    Hidden sugars in Asia's baby food spark concerns    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    Teri Garr, Young Frankenstein and Tootsie star, dies at 79    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Airbus starts work on new China facility
Published in The Saudi Gazette on 03 - 03 - 2016

Europe's largest aircraft manufacturer Airbus started construction on Wednesday on a new facility to deliver wide-body planes in China, as it faces off against bitter US rival Boeing for market share in the world's second-largest economy.
At a ceremony in the northern port of Tianjin Airbus CEO Fabrice Bregier and Chinese officials officially broke ground for the completion and delivery centre that will produce two A330 planes per month.
The centre is an expansion of the firm's existing final assembly plant for A320 single-aisle aircraft in the city.
It comes with China's economic growth at its weakest in a quarter of a century and concerns over its outlook sending shivers through global stock exchanges.
But Bregier said that "this is not true for our market," adding that increased middle-class incomes and easing visa rules were driving a boom in Chinese air travel.
The world's second-largest economy is already Asia's biggest aircraft buyer as a growing middle class takes to the skies in ever-increasing numbers. The country is forecast to have 1.7 billion air passengers by 2034, and is poised in the next two decades to become the largest civil aviation market in the world.
The new $150 million center is the company's first such facility for wide-body aircraft outside Europe, and "marks a new milestone for Airbus' international footprint," Bregier said.
It will take flyable unpainted aircraft from their headquarters in Toulouse, France and add cabins, furnishings and paint, before they are delivered to customers.
Boeing also plans to open a completion center in China, it announced last year. The company sold 300 aircraft worth a record $38 billion during President Xi Jinping's visit to the US in 2015.
The two firms have been in a fierce battle for market share in China, where Airbus says it has gone from 27 percent in 2004 — before it opened the Tianjin final assembly line — to roughly 50 percent today.
The country is now Airbus' largest market, accounting for nearly a quarter of the planes it delivered in 2015. Days before the ground-breaking, Air China announced orders for 12 wide-body aircraft for $2.9 billion.
"I understand that our competitor is trying to mimic" the Airbus strategy by opening a facility, CEO Bregier said in Tianjin, but added: "It's not really state-of-the-art."
A Boeing spokesman retorted: "Partnership is defined by more than a few buildings," calling its relationships in the country "second to none" in supporting the development of Chinese aviation.
Beijing has made building up its aerospace industry a strategic priority, considering it a crucial component of an advanced economy.
Investing in new plants in China is not only a way to increase production, but also a way to win the approval of the government, which controls the airline industry.
"Our industrial cooperation serves a purpose, and that purpose is to facilitate our sales... to China," said Andreas Ockel, general manager of the Tianjin assembly facility. "It's a give and take."
The Airbus A320 assembly plant is a joint venture in which Chinese stakeholders control 49 percent, and the European firm has joint operations with partners across China manufacturing doors, wings, and other parts for A320 family aircraft.
"In China the sales are not limited purely to the commercial dimension," said Eric Chen, president of Airbus China. "You need also to explore industrial cooperation to reinforce the relationship."
For its part Boeing has joint ventures in Boeing Tianjin Composites and Boeing Shanghai Aviation Services as well as a manufacturing innovation center.
But even while it has encouraged partnerships with foreign firms the government is investing heavily in building up domestic champions such as state-owned Commercial Aircraft Corp. of China (COMAC).
Airbus' Bregier acknowledged the threat of future Chinese competition, adding that co-operation only went so far.
"We will try to make their life as difficult as possible," he said. "I exclude in principle to support the development of a competitor."


Clic here to read the story from its source.