China and Boeing are currently in talks for the acquisition of 6,330 aircraft estimated to be worth around $100 billion. (Photo : www.columbusnews.net)
Global commercial aircraft maker Boeing Co. is planning to move the final production work for some 737 jetliners to a new facility in China, timing its announcement to coincide with the first U.S. state visit of President Xi Jinping later this month.
Although Boeing declined to comment on the report, the company issued a statement saying that it is open to the possibility since it has always been looking to expand and improve productivity.
"One way we do this is by working with partners around the world, including in China, our largest international market," the company was quoted as saying.
The report said that Boeing's move would be in line with increased global sourcing of aerospace parts and supplies in which foreign contracts and operations can help win tough sales competitions against European rival Airbus Group NV.
According to the report, Airbus is scheduled to inaugurate its first U.S. final assembly line in Mobile, Alabama, this weekend. The $600-million factory would enable Airbus to employ hundreds of American workers, which foreign automakers often did after building plants in the U.S.
Airbus has major manufacturing in France, but also has set up final assembly lines in Germany and China.
Portions of Boeing's 777 and 787 aircraft are produced by three Japanese industrial giants, and Japan's major airlines have been almost exclusively Boeing customers, the report said.
According to a report published in Aviation Week, the 737 aircraft built at its factory in Renton, Washington, would be painted at Boeing's China facility, where they will also conduct flight testing and perform some interior installation.
The report, however, said that this move could be in conflict with a deal Boeing struck with machinists in 2011.
