Boeing, COMAC to Jointly Build 737 Plant in China

Boeing Tuesday signed a cooperative document with Commercial Aircraft Corporation of China Ltd. (COMAC) to build a 737 aircraft completion center in China, marking a step forward the cooperation between Boeing and Chinese aircraft manufacturing enterprises.

According to the document, Boeing and COMAC will build a joint venture to paint, finish and deliver 737 aircraft to customers, which is the manufacturer's first finishing facility outside the United States.

The 737 program will promote the development of Chinese aircraft manufacturing enterprises, improve the global status of China's civil aircraft supply chain, and make some Chinese enterprises become Boeing's premier suppliers.

The Boeing and China Civil Aviation Cooperation Signing Ceremony was held in Seattle on Tuesday during President Xi Jinping's visit to the United States. Three Chinese companies -- China Aviation Supplies Holding Company, ICBC Financial Leasing Co., Ltd., and China Development Bank Leasing -- signed a deal with Boeing to buy 300 aircraft from the U.S. manufacturer.

Boeing Chief Executive Dennis Muilenburg said on Tuesday the 737 plant in China will increase production rates of the 737 aircraft and will not "result in layoffs or reduce employment for the 737 program in Washington state".