New Boeing Factory in China

April 26, 2011 by  
Filed under Miscellaneous

Monday, 18 April 2011, was a big day for both China and Boeing, as the plans to construct an addition to their existing factory were unveiled. Aviation Industries Corporation of China, along with Boeing, has entered into a joint venture that will see a new division of the factory in Tianjin produce more composites for the aviation industry. The factory, known as Boeing Tianjin Composites Co, will be able to expand with the $21 million investment Boeing has made, and the factory will be able to run at full production capacity by the year 2013.

Boeing Tianjin Composites has been vital to the production of components used on a variety of Boeing’s aircraft, such as the 777, 737, 747-8 and 787. Companies such as Goodrich, Korean Aerospace Industries and Hexcel rely on Boeing Tianjin Composites to provide them with the components they need. Outsourcing is no longer a questionable route to go for major companies, and it is estimated that almost nine thousand six hundred aircraft are dependent on the parts supplied by China. Current value of the partnership that the Chinese aviation industry has with Boeing is estimated at $2.5 billion. The expansion of the factory is a positive gesture for China, as they believe that it will encourage Boeing to assist the Commercial Aircraft Corporation of China with their new venture, which is the production of an aircraft named the C919. It will be a passenger jet aircraft, and if all goes well and according to schedule, the aircraft will be ready for release by the latest 2014.

Commenting on the new addition to the factory, Boeing Supply Chain Management and Operations General Manager, Ray Conner, commented: “It is win-win cooperation. Our Chinese partner will provide high quality components to increase Boeing’s capacity, which in turn boosts our employment in China.” The new addition, which covers an area of fifty-five thousand square meters and provides floor space of twenty-five thousand square meters, will increase employment. To date, Boeing’s involvement in China, with direct and related businesses, has already created approximately twenty thousand employment opportunities within the country.

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