The aircraft industry chain of Airbus in China witnessed a new industrial cooperation with local suppliers, a milestone for strategic cooperation between the Chinese and European aviation industries.

Airbus has signed a cooperation agreement with a local Chinese supplier, marking a new milestone for the strategic cooperation between the Chinese and European aviation industries.

Airbus said on Tuesday that the A320 fuselage equipping project undertaken by Xi'an Aircraft International (Tianjin) Corp (XAT) has commenced operations in North China's Tianjin, a further step forward of the vertical integration of Airbus' supply chain in China.

The project, which began more than two years ago, aims to fulfill fuselage requirements of the Airbus A320 Final Assembly Line Asia located in Tianjin, and will accelerate the pace of Tianjin becoming the center for Airbus in Asia and an important aviation industry base in China, according to Airbus. 

Under the agreement, large parts and the internal system components for the A320 family fuselage will be transported from Europe to Tianjin. Full production capacity is estimated to be reached by mid-2024.

The project is a full-life contract with a maximum annual production capacity of 72 aircraft. It is planned to start formal production this month, completing its first delivery in the third quarter and reaching a target of monthly production by 2024, which will "fully meet the demand for A320 fuselages on the Tianjin Airbus A320 final assembly line."

Chinese experts said that the move shows the attractiveness of China's huge civilian aircraft market, and also the recognition of China's civilian aircraft assembly technology and the development of the civilian aircraft industry chain.

It reflects Airbus' recognition of China's investment environment and its confidence in such investment, amid global trade friction, especially in the special period when the China-Europe Investment Agreement has not yet been signed, Zou Jianjun, a professor from the Civil Aviation Management Institute of China, told the Global Times on Tuesday. 

"It is another major breakthrough in the continued extension of the A320 aircraft industry chain in China," Ma Yan, board chairman of XAT, said on Tuesday.

"We have many localization projects in China, and this is an important project amid the cooperation with China and Europe," Airbus China COO Michel Tran Van said on Tuesday.

He added that the epidemic proved Chinese suppliers' ability to resist risks, and Chinese suppliers' production was never interpreted by the epidemic. Their portion has gotten higher, he said.

XAT has had a long-term partnership with Airbus on its single-aisle aircraft wing equipment since 2009, with a strong record of delivery and quality standards.

China is an integral part of the global aviation industrial ecosystem, and also an important part of Airbus' global supply chain.

There are about 200 suppliers in China supporting almost all of Airbus' commercial aircraft program production and covering all life cycles of aircraft. Airbus' industrial annual spending on the commercial aircraft business in China reached about $1 billion in 2020, representing an increase of almost 60 percent compared with 2016 levels, according to Airbus. 

Airbus has been present in China for several decades. As China and the Asia-Pacific region continue to show strong signs of growth, this presence is expanding rapidly. Airbus opened its first assembly line outside Europe in Tianjin in 2008. Currently, Airbus has a 53 percent market share in China.