Airbus CEO Guillaume Faury announced plans for a new Airbus assembly line in Tianjin, China on Thursday. The move will increase output and double capacity to 75 aircraft per month in 2026, up from the current rate of 45 at the end of this year. This expansion is part of the larger planemaker's strategy to meet growing demand for its popular A321neo model – the largest variant within their narrow-body jet market.
"The decision reflects our strong commitment towards building an even stronger partnership with China," said Faury during Thursday's announcement.
The addition of another production line effectively doubles Airbus' existing capacity on paper; however, actual throughput depends heavily upon factors such as model complexity and specific manufacturing requirements. Moreover, this development comes as a response to increased competition from home-grown Chinese C919 planes entering the market.
Following approval from Beijing authorities earlier last week, European aviation giant Airbus has now secured permission to commence work on previously-announced orders totaling some 160 aircraft units. As American manufacturers continue retreating from Chinese markets amid ongoing pandemic-related disruption and economic uncertainty worldwide – Europe remains steadfastly committed toward maintaining robust trade relations with one of its most critical overseas partners.
Increasing production capabilities across multiple global locations (including four lines based out-of Hamburg), two situated in Toulouse (France), alongside those located both within mainland US territories and Eastern Asia alike; helps ensure greater overall resilience against potential supply-chain disruptions moving forward into coming years ahead.
In recent months - following stringent lockdown measures enforced throughout much previous twelve-month period due-to ongoing COVID19 crisis - senior officials representing People's Republic have been keen emphasize renewed focus investment opportunities available foreign businesses operating locally respective industries sectors: particularly so given sustained growth seen nationwide passenger numbers recorded over past decade+ long timeframe observed thus far therein accordingly so.
Under this latest agreement, Airbus is set to double production capacity of its flagship A320 single-aisle jet at the Tianjin facility. The Chinese government's Thursday approval allows for manufacturing 160 planes out of a previously-negotiated total shipment amounting to as many as 292 units – valued at an estimated $40 billion before discounts are applied.
This expansive deal and increased presence in China showcases how important the country remains as a vital market for European companies like Airbus.