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Boeing expands its China venture

(Xinhua)
Updated: 2008-11-19 19:46

BEIJING - The Boeing Company said that an expansion of its China venture broke ground on Wednesday in north China's port city of Tianjin.

The 21-million-US-dollar project was launched after the global giant acquired a majority stake in the Tianjin-based BHA Aero Composites Parts Co. Ltd. (BHA) in July. Boeing also gained rights to land adjacent to the venture facilities in the Binhai New Area.

Construction was expected to be completed by early 2010 and the new facility would be fully operational by 2013, the US company said. The expansion would increase capacity by about 60 percent by 2013 and employment would rise to about 1,000 from the current 600, it added.

BHA was previously a joint venture between Boeing, Hexcel -- a leading global supplier of advanced materials -- and the former China Aviation Industry Corp. I (AVIC I). AVIC I and II merged to create the China Aviation Industry Corp. (AVIC) this month.

Earlier this month, Boeing renamed BHA as Boeing Tianjin Composites Co. after the company purchased a 40 percent stake in the venture from Hexcel.

The venture has supplied composite parts to domestic and foreign companies since it started up in 2002.

Boeing said it had purchased more than 1.5 billion US dollars worth of aviation hardware and services from China since the 1980s and the figure would more than double in coming years.