China orders 150 Airbus, to set up plant
Sino-French partnership cemented

China and France Thursday signed a series of deals covering aviation, railways and nuclear power in Beijing.

China Aviation Supplies Import and Export Group signed an agreement with Airbus for the purchase of 150 A320 aircraft and a letter of intent for 20 A350XWB.

The purchase represents the largest single transaction ever for Airbus in China, the company said yesterday.

It is also the first time that China has showed interest in buying the A350, Airbus' long-range wide-body model which is available from 2012 and planned as competition to Boeing's new 787.

France's President Jacques Chirac shakes hands with China's President Hu Jintao (R) during a signing ceremony at the Great Hall of the People in Beijing October 26, 2006. [Reuters] [More photos on Chirac visit]

The European aircraft maker also signed a framework agreement on the establishment of an A320 Family Final Assembly Line in Tianjin.

According to the agreement, aircraft assembly in China will begin in early 2009, with the aim of ramping up production to reach four aircraft per month by 2011.

"While the aircraft sections will continue to be produced in Europe, the establishment of such an assembly line, which will deliver aircraft to the same standards as those produced in Europe, is beneficial to both China and Europe," said Louis Gallois, Airbus president and chief executive officer, at the signing ceremony.

In the field of railways, Alstom of France has signed a letter of intent with the Ministry of Railways to deliver the powerful 500 "Co-Co" (triple axle) locomotives.

The deal is valued at 1.2 billion euros (US$1.5 billion) in total, with Alstom's share worth 300 million euros (US$375 million) and 900 million euros (US$1.13 billion) for its Chinese partner Datong Electric Locomotives.

Alstom will design and produce the first 100 locomotives. Most of the production and quality control of the first 100 units will be carried out at its Belfort (France) plant.

The remaining 400 locomotives will be built at the Datong Electric Locomotives site in China. This company has already partnered Alstom in a 2005 contract to manufacture 180 BoBo electric (twin axle) locomotives.

China Guangdong Nuclear Power Holding Co Ltd and the French national energy group, EDF, signed a deal on nuclear power production, plant construction and project development. EDF also signed an agreement with China Datang Corporation on power plants in China.