EVERETT, Wash., Sept. 23, 2015 /PRNewswire/ -- Boeing (NYSE:
BA) today welcomed China President Xi
Jinping to its widebody commercial airplane factory and
announced several agreements that will broaden and deepen mutually
beneficial cooperation between Boeing and China.
The agreements include orders and commitments for 300 Boeing
narrowbody and widebody aircraft and expanded collaboration between
Boeing and China's commercial aviation industry.
Together, Boeing and China committed to further advance
development of China's commercial aviation industry and meet
strategic business objectives for Boeing in the world's largest
airplane market going forward.
President Xi, accompanied by Boeing executives, viewed final
assembly lines for the 787 Dreamliner, 777 and 747-8, as well as
aircraft components made by Chinese aviation suppliers. The
president also spoke with Boeing employees and the 787 chief pilot
about their work on airplanes built for Chinese carriers.
Boeing President and CEO Dennis
Muilenburg said Boeing appreciated China's continued trust
and confidence. "Today's visit by President Xi represents a new
chapter in the valuable relationship between Boeing and China,"
Muilenburg said. "Boeing is committed to further strengthening and
deepening our partnership with China in mutually beneficial ways
that will bring positive outcomes to Boeing and our Chinese
partners."
"Boeing will continue to work closely with our customers,
suppliers and other stakeholders in China to support the long-term growth of
China's aviation industry and jobs here in the United States," said Boeing Commercial
Airplanes President and CEO Ray
Conner.
Agreements announced today include:
Boeing and National Development Reform Commission
(NDRC)
Boeing and NDRC have signed a Memorandum of Understanding (MOU)
that will advance their long-term strategic cooperation through
several "Pillars of Partnership." These pillars include:
- Industrial cooperation
- Continued development of a world-class aviation transportation
system through deliveries to China of Boeing airplanes and
services
- Development of technologies to reduce aviation's environmental
impact and enhance sustainability
- Leadership development and training for the next generation of
leaders in China's aviation industry
- Continued cooperation to support the safety, efficiency and
capacity of China's air transport system
Orders and Commitments for Boeing Commercial
Airplanes
Boeing and China Aviation Supplies Holding Company (CASC) have
signed a General Terms Agreement related to the purchase of 300
airplanes. The package has a value of approximately $38 billion at list prices.
Aircraft orders and commitments include:
- (240) airplanes for Chinese airlines, including (190) 737s and
50 widebody aircraft
- (60) 737s for leasing companies ICBC and CDB Leasing
"Boeing airplanes have played an important role in supporting
the development of China's aviation transportation for the past 40
years," said Li Hai, president of
China Aviation Supplies Holding Company. "These additional
airplanes will further help connect the people in China and around the world."
"China is a critical international market for commercial
airplanes," said Conner. "We thank our Chinese customers for
selecting fuel-efficient Boeing airplanes to meet their fleet
growth and expansion."
Orders are posted on Boeing's Orders & Deliveries website
after all contingencies are cleared.
737 Completion and Delivery Center in China
Boeing and Commercial Aircraft Corporation of China, Ltd.,
(COMAC) will partner to open a facility in China for the interiors completion, paint and
delivery of Boeing 737 aircraft to Chinese customers. The joint
venture facility will significantly expand Boeing's collaboration
with China's aviation industry while also enabling future
production rate increases at Boeing's 737 final assembly factory in
Renton, Wash. This China-based
facility will not reduce 737 Program employment in Washington State.
"Boeing is expanding our longstanding relationship with Chinese
industry to meet vital goals for our company: We are bringing the
Boeing 737 closer to our Chinese customers, supporting rising 737
production rates and enhancing our access to China's dynamic and
fast-growing aviation market," said Conner. "The 737 will be a
cornerstone of the Chinese fleet for years to come, and we look
forward to delivering 737s to Chinese customers in China."
COMAC Vice President Wu Guanghui
said: "The new collaboration between Boeing and COMAC will help
advance the Chinese commercial transportation market in a better
and faster way, and will benefit the development of supporting
Chinese industries related to aircraft completion as well as the
global growth of China's civil aviation business."
Boeing, COMAC and Chinese government officials are working
toward a final business agreement and will announce the facility's
location and timing of first deliveries at a later date.
Boeing, now building a record 42 737s per month, will increase
production to 47 airplanes per month in 2017 and 52 airplanes per
month in 2018 to meet strong demand for the 737, the world's most
fuel-efficient single-aisle airplane.
Boeing and Aviation Industry Corp. of China (AVIC)
Boeing and Aviation Industry Corp. of China (AVIC) will broaden
their long-term collaboration to support Boeing's commercial
airplane programs. In a framework agreement, the companies said
they intend to further advance AVIC's manufacturing capabilities by
adding major component and assembly work packages; strengthening
leadership; and developing AVIC's broad aviation infrastructure and
business practices, including supply chain management.
"Our companies have committed to work together to expand Boeing
and China's mutually beneficial supplier-partner relationship,"
said Kent Fisher, vice president and
general manager, Supplier Management, Boeing Commercial Airplanes.
"Broadening and deepening our long-term collaboration demonstrates
Boeing's continued commitment to China and our continued trust in
AVIC's ability to meet Boeing's stringent requirements for high
quality and on-time delivery. In addition, AVIC has been a
great role model for Partnering for Success, using Lean
manufacturing techniques to increase the affordability of our
airplanes."
"Boeing's commitment to increase AVIC's statement of work will
help enhance our manufacturing capabilities, capacity and
efficiency, which will contribute to improving the competitiveness
of Boeing airplanes," said Geng Ruguang, executive vice president,
AVIC. "We look forward to strengthening our partnership even more
as we work together to address the win-win opportunities presented
in a rapidly growing market for commercial airplanes."
Further development of sustainable aviation biofuel
Under the framework of the MOU between Boeing and NDRC, Boeing
and NDRC announced a new initiative to turn agricultural waste in
China into sustainable aviation
biofuel. Boeing will partner with NDRC to turn items from farms,
such as corn cobs and wheat stalks, into sustainable jet fuel as a
way to reduce aviation's carbon emissions.
"Biofuel collaboration between Boeing and Chinese partners is a
prime example of how we are determined to make progress on
environmental challenges that no company or country can solve
alone," said Ian Thomas, president,
Boeing China. "Together, we're finding innovative ways to support
China's aviation industry and help build a sustainable future."
When produced sustainably, aviation biofuel reduces carbon
emissions by 50 to 80 percent on a lifecycle basis compared to
conventional petroleum jet fuel, according to studies by the U.S.
Department of Energy.
Boeing has partnered with Chinese stakeholders to support
development of China's air transport system since President
Richard Nixon arrived in
Beijing on Air Force One, a Boeing
707, in 1972. Today, more than 50 percent of commercial jetliners
operating in China are Boeing
airplanes. Over the next 20 years, China will be Boeing's largest
commercial airplane market with a projected need for 6,330 new
airplanes, worth an estimated $950
billion.
Boeing is the largest international customer of China's aviation
manufacturing industry, with suppliers playing a role in 737, 747,
767, 777 and 787 Dreamliner production. Boeing works with Chinese
industry, universities and other institutions to develop
sustainable aviation biofuel and improve air-traffic system
efficiency.
For more information, see www.boeing.com
Contact:
Jessica Kowal
Boeing Commercial Airplanes Communications
+1 206-660-6849
jessica.m.kowal@boeing.com
Yukui Wang
Boeing China Communications
+86 10 5925 5588
yukui.wang@boeing.com
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SOURCE Boeing