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Boeing Steps Up Manufacturing, MRO Services In China
Published on: 2011-09-20
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Boeing is doubling production of its aircraft composite parts factory in Tianjin, China, and also has been making investments to support China’s fast-growing airline industry.

The plan is to progressively expand production until it doubles, says Boeing China’s newly appointed president, Bertrand-Marc Allen.

Boeing Tianjin Composites Co. is receiving more work now that Boeing is stepping up production of various lines, such as progressively increasing production of 737s to 42 aircraft per month in 2013, up from 32 aircraft per month now. The Tianjin factory is a second source supplier for Boeing parts.

Boeing would like to establish more businesses in China and Allen says areas of possible future cooperation could, for example, include new ventures focused on the environment, air traffic management, and aircraft parts supply and end-of-life issues.

China’s airline industry has been experiencing double-digit growth per annum for many years now, and Boeing has been active in helping to train the needed personnel, such as pilots and maintenance engineers. It has a wholly owned subsidiary, Boeing Shanghai Aviation Training Services, which has a 787 simulator in-country and is about to launch 787 type-rating training of Chinese pilots, says Allen. China Southern Airlines will be the first Chinese carrier to operate 787s.

The U.S. aircraft maker is also an investor in China’s maintenance, repair and overhaul (MRO) sector. It is a sizable shareholder in Taeco in Xiamen and operates Boeing Shanghai Aviation Services. The Shanghai MRO company has been performing heavy checks on aircraft, many for foreign carriers, and hopes to expand into the passenger-to-freighter conversion business.

In 2007, the MRO was eyeing Boeing 767 passenger-to-freighter conversions, but Allen says the 2008 global economic downturn adversely affected the global cargo business, temporarily putting a stop to the MRO’s ambitions.

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