Boeing and Airbus plan to spend more on Chinese suppliers

EVERETT — Boeing has picked China’s largest state-owned aerospace manufacturer to make tail sections for the 777 family of airplanes starting in 2017.

Boeing announced its deal with the Aviation Industry Corp. of China (AVIC) on Tuesday, the opening day of that country’s Zhuhai Airshow.

Both Boeing and its competitor, Airbus Group NV, say they plan to get more airplane parts from Chinese suppliers.

Airbus expects to spend $1 billion a year for parts from China by 2020, Reuters reported Tuesday.

That is about twice what it currently spends.

Boeing also expects to double how much it buys from China “in coming years,” according to a news release from the Chicago-based company.

The airplane maker has spent about $2 billion on components and assemblies from China during the past 30 years.

AVIC facilities there make parts for all Boeing programs including the 737 vertical and horizontal stabilizers, 747 inboard flap, 767 converted freighter floor beams and 787 rudder.

Under the new 777 contract, AVIC’s subsidiary Shenyang Commercial Aircraft Corp. will make tips for the 777 vertical fin and horizontal stabilizer at its new facility in Shenyang, China. Boeing qualified SACC for composite work in July of this year following a comprehensive audit of equipment, workforce and processes.

Spending more on Chinese suppliers could help Airbus and Boeing net more airplane orders from Chinese airlines. The country is expected to need more than 6,020 new airliners worth about $870 billion over the next 20 years, according to Boeing’s market forecast released in September.

China’s state-owned airplane maker COMAC will also be competing to meet that demand. It announced 30 new commitments for its single-aisle C919 jetliner on Tuesday.

COMAC now has more than 400 orders for the C919. Deliveries are scheduled to start in 2018, two years later than originally planned.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.