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Boeing Finalise $600 Million in Contracts with Chinese Suppliers for 787

03 June 2005

Boeing has signed agreements with Chinese suppliers worth an estimated US$600 million which includes the first firm contract with such suppliers to build parts for the all-new Boeing 787 Dreamliner.

Boeing Commercial Airplanes Vice President and General Manager, Airplane Production Carolyn Corvi represented Boeing in Beijing to finalize contracts for the 787 composite rudder, the 737 forward entry door and the 737 automatic over-wing exit door with Chengdu Aircraft Industrial (Group) Co. Ltd. (CAC), a China Aviation Industry Corporation I (AVIC I)-affiliated company. Also completed were contracts for the 787 composite wing-to-body fairing panels between Boeing and Hafei Aviation Industry Co., Ltd. (Hafei), an AVIC II-affiliated company.

Shenyang Aircraft Corporation, an AVIC I-affiliated company, signed memorandum of agreement with Boeing to build the 787 leading edge assembly for the vertical fin. BHA Aero Composite Parts Co. Ltd. signed memorandums of understanding to build the interior panels for the 777 control cabin, as well as the wing-to-body fairing panels and tail cone for the Next-Generation 737. BHA is an equity-share joint venture between Boeing, Hexcel Corp. and AVIC I.

""Today's agreements, in full compliance with U.S. and Chinese export regulations, offer a continuing example of the important and growing role in China on the 787 and participation in the 777, 747 and 737 airplane programs,"" Corvi said. "" China's aviation industry is providing outstanding technological capabilities and resources that help us meet quality, cost and delivery imperatives in our programs - particularly on the new 787. China has been a reliable partner to Boeing for many years and we are honored that they are part of our future with the 787 airplane.""

Xu Zhanbin said: ""This is the very first time an AVIC II company has worked with Boeing. We look forward to seizing this historical opportunity to enhance and extend our working-together relationship with The Boeing Company. I believe our cooperation will be mutually beneficial and a complete success.""

Luo Ronghuai of CAC expressed pleasure in becoming a supplier-partner on the all-new 787 airplane.

""The contract signing signifies a new era of Sino-Boeing cooperation,"" he said. ""It is an honour to be one of the first supplier-partners in China to finalize a contract for work on the Boeing 787 Dreamliner, as well as receive new work on the best-selling 737 airplane.""

Hu Haiyin said Hafei is looking forward to working with Boeing on the wing-to-body fairing panels for the 787 Dreamliner.

""We are very excited to be selected as Boeing's partner to help build the structural components for this exciting new airplane,"" he said. ""This opens the first page of a positive Hafei-Boeing relationship.""

Li Fangyong of Shenyang Aircraft Corporation said there has been a very long and trusted relationship working together with Boeing on the 737 airplane, which his company intends to expand on the 787 airplane.

""Building for the future, SAC has constructed a new commercial machine shop and has nearly completed a new composite manufacturing center,"" he said. ""It is our goal to support all future Boeing programs.""

Boeing said that commercial aviation is crucial to the advancements that will sustain continued economic growth and development in China. With these announcements today, Boeing now holds contracts valued at $1.6 billion with China's aviation industry.

Today, more than 3,500 Boeing airplanes - one third of Boeing's world fleet - have major parts and assemblies built in China.

Boeing is China's largest commercial aviation partner. Over the next 20 years, Boeing forecasts that China will need 2,300 jetliners, becoming one of the world's largest airplane markets. Boeing has offered free training to more than 27,000 Chinese aviation professionals since 1993 including pilots, maintenance, flight operations, quality and manufacturing personnel, executives and managers.






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