A Chinese firm has signed a framework agreement with Russian aircraft manufacturer Sukhoi to set up an assembly line in Central China's Zhengzhou for the production of the Sukhoi Superjet 100 (SSJ-100).

According to the deal, O-Bay Aircraft Co, will produce 100 SSJ-100 aircraft, sources with O-Bay said Tuesday.

 The deal will cost O-Bay 20 billion yuan ($3.2 billion).

Sources with O-Bay said that the two companies plan to finalize the deal at a later date. If all goes to plan, the first Russian jet to be produced in Zhengzhou is expected to be in two years.

O-Bay plans to team up with two other Chinese firms - China Tianli Aviation Technology Co and Industry and Shanghai Yuan-Fei Aviation Technology Co. - to help with the project.

Once the deal is officially clinched, Zhengzhou, capital of Henan Province, will become the third city in China after Tianjin and Shanghai to boast an assembly line of aircraft with over 100 seats.

The Zhengzhou airport economic zone, where the assembly line is likely to be established, is China's first national experimental zone for airport-based economy.

The project will provide nearly 500,000 new jobs for the locals. The manufacture of airplanes can also help cultivate a large number of high technology workers, which will enhance the overall human resource level in the province, Zhengzhou Evening News reported.

O-Bay, a private enterprise that has not been heard of very much in the industry, has attracted attention regarding its background due to its big investments.