Shanghai Aircraft Manufacture Factory Monday delivered the 500th next-generation 737 horizontal stabilizer to the Boeing Company, marking another significant milestone in the Boeing-China aviation partnership.

"The delivery underscores the key role China's aviation manufacturing companies have in Boeing's global supplier network," said David Wang, president of Boeing China.

The next-generation 737, the newest member of the Boeing 737 family, continues the 737's pre-eminence as one of the world's best-selling and most reliable commercial jet planes.

The factory has had a mutually beneficial relationship with Boeing since 1995 when the project was launched and it delivered the first set of 737 horizontal stabilizers to Boeing in 1999.

"Everything is going on smoothly and now the factory produces 14 sets a month," Wang said.

Boeing's 737 family has won orders for more than 5,300 airplanes. China operates 296 Boeing 737s, accounting for nearly 40 percent of the commercial jets flying in China.

The next-generation 737 planes will be delivered to clients in 2008 after one year's trial flying, said Wang.

"We remain excited about the 737 and we will continue to invest in and improve the next-generation 737 family," said Larry Loftis, director of 737/757 Operations, Boeing Commercial Airplanes.

China Aviation Supplies Import & Export Corp signed an agreement with the Boeing Company in October 2001 for 30 Boeing 737 jetliners, valued at approximately US$1.6 billion.

In September 2004, Boeing finalized an order agreement with Air China for seven new next-generation 737-700 jetliners, Loftis said.

"Talks with other Chinese airlines about new orders are under way," Wang said.

At present, Boeing is cooperating with factories in Xi'an, Chengdu, Shenyang, Chongqing and Harbin to manufacture 737 vertical fins, 747 trailing edge ribs, 757 horizontal stabilizers, 757 cargo doors and 737 tail section module.

"We will further help those factories to enlarge their capability of manufacturing parts and components for 737 planes," Wang said.

Boeing's investments are growing and its procurements of aviation hardware from China total about US$500 million to date and are expected to reach US$1.3 billion by 2010, he said.

Boeing is continuously expanding its partnerships in China, as evidenced by current efforts to create a Boeing Shanghai Aviation Services joint venture to be based at Shanghai Pudong Airport.

The venture is being set up to modify, maintain and repair Boeing airplanes, he said.

(China Daily September 21, 2004)