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Fri, Jun 09, 2006

China Picks Tianjin For New Airbus Plant

Will Assemble A320s

Some Airbus A320s will soon come out of the factory with the "Made In China" label. That's the word from the official Xinhua news agency, which reported Thursday the Chinese government has signed off on Airbus's plan to assemble the narrow-body planes in the northern port city of Tianjin.

No specific details were available... but the move by Airbus to build planes in China has been discussed for some time, and French Transport Minister Dominique Perben said last month that he believed Beijing had agreed to the factory being located in Tianjin, located about an hour away from the capital.

China has already proven to be a strong market for the A320-family of aircraft -- especially after a$10 billion, 150-plane order the Chinese government placed with Airbus last year.

Of course, Airbus -- and China -- are already looking ahead to the future, too. Airbus and French officials have confirmed that as part of the deal to build the plant in China, the country will have between a 5 to 10 percent stake in the development program to replace the A320.

FMI: www.airbus.com

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