Boeing Joint Venture Marks Opening of New Factory in China

Boeing Tianjin Composites Co. Ltd., a joint venture between Boeing Co. and Aviation Industries Corp. of China (AVIC), earlier this week celebrated the opening of its new factory in China.

The new facility, which was built next to the joint venture's factory in the New Binhai area of Tianjin, will boost the company's production capacity by 60%, according to Boeing. With the expansion, the joint venture's employment ranks will grow from 700 to more than 1,000 by 2013, when the plant is expected to be in full production mode. "Boeing Tianjin's new factory is an example of win-win collaboration between China and Boeing," said Ray Conner, vice president and general manager, supply chain management and operations, Boeing Commercial Airplanes. "We rely on our Chinese partners to produce high-quality components for Boeing airplanes, and we are excited to expand this successful joint venture to increase production and employment." Boeing Tianjin Composites makes components for all of Boeing's in-production programs, including the 737, 747-8, 767, 777 and 787. Boeing said it invested $21 million to develop the new factory. "The expansion of Boeing Tianijin Composites is just one example of how Chinese companies have an increasing role as our manufacturing partners and collaborators," said Marc Allen, president of Boeing China. "Through commercial airplane sales, manufacturing, airplane services and research partnerships, we are committed to finding mutually beneficial avenues to advance our long-term relationships in China." Boeing Tianjin Composites' new facility in China is certified to meet Leadership in Energy and Environmental Design standards, according to Boeing. Boeing Expects to Double its Chinese Procurement by 2015 Noting that it has partnered with China's aviation industry for nearly 40 years, Boeing said the new facility "capitalizes on Boeing Tianjin's existing world-class composites manufacturing operations and product offerings, and will allow Boeing Tianjin to continue providing support to Chinese-owned aviation factories that are also part of Boeing's commercial airplane supply base." Boeing Tianjin's customers include Boeing, Hexcel, Goodrich, FACC AG, Korean Aerospace Industries, Triumph Group, Boeing Aerostructures Australia, Shanghai Aviation Industry Corp. and Xi'an Aviation Industry Corp. Boeing noted that it is the largest customer of made-in-China airplane parts, with a direct spend of more than $200 million annually in China on aviation hardware and services. The Chicago-based aerospace manufacturer said it expects to more than double its Chinese procurement by 2015. Boeing said it is working with Chinese suppliers and partners on a number of initiatives, including executive development, technical training, air-traffic management and aviation biofuels.