Airbus to Build New China Jet Factory as Apple Pulls Back
Airbus SE will double production capacity in China of its top-selling jet in a bold bet on future demand in one of the world's biggest aviation markets.
The European planemaker will add a second final assembly line for A320 narrow-bodies at its existing factory in Tianjin, under a deal signed by Chief Executive Officer Guillaume Faury in Beijing on Thursday. The move is a boost for Chinese manufacturing as other firms like Apple Inc. rethink production in the nation amid rising tensions with the US.
The expansion of the Tianjin facility will be an “important part” of Airbus's plan to produce as many as 75 A320neo family jets a month by 2026, Faury said on a call with reporters from Beijing. At the plant, which opened in 2008, workers stitch together major sections such as wings and fuselage assemblies, giving the aircraft its final shape. Airbus and chief rival Boeing Co. have struggled to raise output amid supply-chain constraints as demand for passenger planes has surged coming out of the pandemic.
“We're paving the way for the growth of the market here in China,” Faury said. He was part of a delegation of dozens of French business executives traveling with President Emmanuel Macron, many of whom were returning to China for the first time since the pandemic.
Airbus however, looked set to leave China without a new plane order during Macron's three-day state visit, despite intensive talks over the past weekend with Chinese customers. Bloomberg reported this week that the company was targeting a follow-on order that would include A350 and possibly A330neo wide-body aircraft.
Faury said Airbus remained optimistic about winning more business in China, where it holds a sizable advantage over Boeing Co.
“We are all discussing with
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