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Airbus (OTCPK:EADSF) (OTCPK:EADSY) will double production capacity in China for its best-selling A320 narrow-body jet, adding a second final assembly line at its existing factory site in Tianjin under an agreement. signed on Thursday by CEO Guillaume Faury in Beijing.
The expansion will further Airbus’ (OTCPK:EADSF) (OTCPK:EADSY) plan to produce up to 75 A320neo Family aircraft per month by 2026, and is a confidence boost for chinese manufacturing while other companies reconsider production in the country after three years of harsh COVID lockdowns.
Airbus (OTCPK:EADSF) (OTCPK:EADSY) has also entered into general terms of agreement with a Chinese entity for the purchase of 160 of its commercial aircraft.
Chinese carriers ordered more than 300 narrow-body aircraft from Airbus (OTCPK:EADSF) (OTCPK:EADSY) last year, valued at more than $40 billion before discounts; airlines in China comprise ~20% of the company’s global deliveries.
Airbus (OTCPK:EADSF) (OTCPK:EADSY) deliveries remain weak and lag behind last year’s figures, but its share price has been rising, writes Dhierin Bechai in an analysis published in Seeking Alpha.
