Chinese aircraft manufacturers will participate in the production of the A380 jet, the world's largest aircraft produced by Airbus, following a major agreement signed in Paris on Friday.

An Airbus China spokesman said Sunday that Airbus has signed a deal with China Aviation Industry Corp I (AVIC I) on subcontracting projects worth US$100 million.

"Production of the upper and lateral panels of the A380 nose landing gear bay was part of the agreement," the spokesman said. "The project will be carried out via Airbus first-tier supplier Latecoere, a French company."

Airbus will also allocate forward cargo door projects for A330/A340 aircraft via Eurocopter, another first-tier supplier, to Shenyang Aircraft Corporation, which is affiliated with AVIC I, the spokesman said.

Laurence Barron, president of Airbus China, said the deal is part of Airbus' plan to increase its procurement from China.

The value of procurement from China will reach US$60 million annually by 2007 from the current level of about US$10 million, he said.

The A380 program has maintained momentum, with final assembly of the aircraft having started on May 7, Barron said.

With the first A380 scheduled to enter service in 2006, operational preparation is also gaining momentum, he said.

More than 60 airports will see the A380 before 2010. Many are already able to handle the A380 today, while others are preparing to accept the aircraft when they enter service.

"The 2008 Olympics in Beijing and the 2010 World Expo in Shanghai will stimulate the development of China's airline industry," Barron said.

"We believe that the 555-seat A380 will be an ideal vehicle to transport tens of thousands of athletes, sports fans, businessmen and tourists to China," he said.

Moreover, China's airline industry will grow rapidly alongside fast economic growth. The A380 will be the best choice for airlines operating on trunk routes between the hubs of Beijing, Shanghai, Guangzhou and other major cities, as well as on international networks, he said.

Airbus's business in China has been steadily expanding since it first entered the country in 1985.

The Airbus fleet in service in the Chinese mainland, Hong Kong and Macao has grown to more than 220 today from 29 in 1995.

On Friday, China Aviation Supplies Import & Export Group Corporation signed an agreement with Airbus for the purchase of 20 A330-300 aircraft. The aircraft are scheduled for delivery from the first quarter of 2006.

"Airbus is not only selling aircraft in China, but is also committed to the long-term development of China's aviation industry," Airbus President and CEO Noel Forgeard said.

Industrial cooperation between Airbus and the Chinese aviation industry began in 1985, when the General Administration of Civil Aviation of Shanghai, now China Eastern Airlines, became the first carrier in China to operate the Airbus aircraft.

Contracts for Chinese companies to build sections of Airbus aircraft followed, as did further orders from Chinese airlines.

Aerospatiale, which is now Airbus France, signed the first product sub-contracting agreement in 1985 with Xi'an Aircraft Company for the manufacturing and assembly of access doors for Airbus A300/A310 wide body aircraft.

Since then, the total value of projects subcontracted by Airbus to Chinese manufacturers has exceeded US$500 million.

In 2003, the Chinese manufacturers delivered more than US$14.5 million worth of aircraft components to Airbus.

AVIC I Senior Vice-President Gu Huizhong said: "We appreciate Airbus' efforts to carry out effective cooperation with mutual benefits for Chinese manufacturers."

Gu hoped the cooperation could be expanded.

(China Daily June 14, 2004)