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By Lu Haoting (China Daily)
Updated: 2007-07-19 11:51

China Aviation Industry Corp I (AVIC I) is "sparing no effort" to bid for Airbus' six European production plants, a top executive of the company said yesterday.

"We have received approval from the government and have lined up all the capital needed. More than two banks have provided (financial) support to us," said Lin Zuoming, general manager of AVIC I.

AVIC I, a long-time subcontractor of Airbus, said during the Paris Air Show last month that it would invest in or buy the six plants Airbus plans to sell.

The European aircraft manufacturer is hiving off the plants to save costs as part of its Power8 restructuring plan.

The first three sites are Filton in Britain, Meaulte in France and Nordenham in Germany. Airbus will bundle the composite material work packages of the A350, due to enter services in 2013, in the plants. The other three sites are Laupheim and Varel in Germany and Saint-Nazaire in France.

"But there are still many complicated factors that hobble the bid," Lin said, adding that AVIC I has not received any bidding invitation from Airbus. The current bidders are aviation manufacturing enterprises in North America and Europe.

Lin declined to tell what the "complicated factors" are.

Analysts said "political interference" could be a major problem facing AVIC I as the aviation manufacturing industry represents a nation's final test of technological advancement, and China has expressed its ambition to break the duopoly of Boeing and Airbus in the global aviation market.

"China's emergence has made many people nervous. But (if the bidding is successful), we would only complement, rather than threaten anybody," Lin said.

Airbus has subcontracted component manufacturing to China for more than 20 years and the volume will exceed $60 million this year and double that amount by 2010.

More than half of Airbus' worldwide fleet is equipped with components manufactured in China, including the rear passenger and emergency exit doors and the wing box of the A320-family aircraft, the electronics bay doors, brake blades and medium air duct for the A330 and A340 aircraft.