Singapore (Platts)--2Jul2007

US aviation giant Boeing has announced agreements with Chinese suppliers
for the production of commercial aircraft parts and components, including the
first firm contracts with Chinese suppliers to build parts for the Boeing
747-8 Intercontinental Passenger and Freighter aircraft, Xinhua reported over
the weekend.
     The contracts are valued at an estimated $500 million and include the
747-8 inboard wing flaps with Xian Aircraft Industry, and ailerons and
spoilers with Chengdu Aircraft Industrial, both affiliated to China Aviation
Industry Corporation I (AVIC I). 
     Also signed were contracts for composite parts to be built by Hafei
Aviation Industry, an AVIC II-affiliated company, and composite panels for the
vertical fin to be built by BHA Aero Composites, an equity joint venture
between Boeing, Hexcel Corp. and AVIC I.
     "These contracts demonstrate Boeing's commitment to continued expansion
of industrial cooperation with China. China's outstanding technological
capabilities and resources make these suppliers ideal partners for the Boeing
787 and the 747-8, which...offer airlines the lowest operating costs and best
economics of any large passenger or freighter aircraft," said Carolyn Corvi,
Boeing Commercial Airplanes vice president and general manager of Airplane
Programs. 
     "We are honored to help Boeing build the 747-8 as it opens a new page for
the long-term Boeing-XAC partnership," said Meng Xiangkai, vice chairman of
Xian Aircraft Industry.
     Boeing and Boeing suppliers hold contracts totaling $2.5 billion with
China's aviation industry.