Boeing set to commence operations in new China Completion facility in December
Boeing is in the final stages of preparing its new 737 completion facility in China for its grand opening in December, where it will immediately begin operations.
With the Boeing 737 being the prime money maker for the company, just like the A320 is to Airbus, it’s crucial to have a fast and efficient production system in order to deliver aircraft to customers on time.
The new facility will be responsible for cabin installation and painting of 737s as they come off the production line and are able to be flown around. From there, Boeing can deliver aircraft to wherever they need to go, adding another point of access to airlines around the world. Air China will be the first airline to have an aircraft completed and delivered from the new facility.
Only one aircraft will be delivered from the facility this year, but Boeing aims to steadily drive up the rate of deliveries until they reach around 100 per year.
Last year, Boeing invested $33 million into a joint venture with COMAC, taking majority control of the facility, which is located in Zhoushan.
The race to expand in China is fierce as Airbus and Boeing are constantly looking at ways to expand their operations, allowing for faster deliveries. Additionally, the cost to fit and paint aircraft in China is cheaper than company facilities in the US and Europe. Airbus already has their A330 completion plant in Tianjin, which also serves as an A320 family production line. This facility will also see a rise in production and completion rates over the next few years.
Talks as to whether the A350 should join Airbus’ Tianjin facilities have been in place since late 2017 but no further announcement has been made.
For Boeing, this new completion and delivery center is only another part of their business in China. With their long and developed supply chain situated there, its only the beginning of what we could see in the future when it comes to expansion.