The China Aviation Industry Corporation I (AVIC I) and Airbus signed a protocol on November 5 to confirm the extension of cooperation in activities to produce A320 Family wing boxes in China, Xinhua News Agency reported today.

The protocol refers to an initial contract, with a projected total value of over US$500 million, signed earlier this year that committed them to the third phase of the A320 Family Wing Cooperation Program.

This involves the production of wing boxes, and now also the management of a second tier supply chain. Xinhua said it represents further significant progress in Airbus' overall program of technology transfer to the Chinese aviation industry.

The A320 Family Wing Cooperation Program is a key industrial cooperation program between Airbus and AVIC I, said Yang Yuzhong, AVIC I Executive Vice President.

"We successfully kicked off the third phase of the program in April this year,” said Yang, “With joint effort and close cooperation, we are very confident that we can gradually undertake the production of whole wing box packages for the A320 Family. "

Airbus General Manager Iain Gray said the company is committed in the long term to substantially increase industrial cooperation with the Chinese aviation industry.

The A320 Wing Cooperation Program has set an excellent example of mutually beneficial cooperation between Airbus and major Chinese manufacturers, he said, and Airbus has no comparable project with any other country.

"We are looking forward to extending the scope and improving the levels of cooperation with our Chinese partners," Gray added.

Five Chinese companies are now involved in producing parts for Airbus: Chengdu Aircraft Corporation, Shenyang Aircraft Corporation, Xi'an Aircraft Company, Hong Yuan Aviation Forging and Casting and Hafei Aviation Industry Co. Ltd.

(Xinhua News Agency November 10, 2005)