This follows the signing of the memorandum of understanding between NDRC and Airbus in December 2005 to further upgrade cooperation between Airbus and China in the field of civil aviation.
Out of four cities considered for the establishment of the FAL, Tianjin was selected due to its proximity to a seaport, provision of labour and its industrial capabilities.
Airbus and the NDRC will formally announce the location of the new FAL site in September 2006, with a view to commence operations in 2008 with a production ramp up to four aircraft per month by 2011.
Industrial cooperation between Airbus and China has been steadily increasing in recent years. In addition to the FAL feasibility study, a number of other initiatives are already underway. They include targets for increased parts procurement, as well as the setting up of the Airbus (Beijing) Engineering Centre (A(B)EC), which was inaugurated in July 2005.