DID has just finished covering the agreement between EADS and China to jointly develop the EC175 helicopter, which could be worth EUR 10 billion over the program’s lifetime. Other programs underway and recent developments that are deepening what EADS described as a “strategic partnership” include:
* On the occasion of the visit of Chinese Prime Minister Wen Jiabao to France yesterday EADS also signed a firm commitment from CASC to purchase 150 A320 family aircraft; to date, this is the largest order for Airbus aircraft in China and throughout the world.
* An agreement between Airbus and the NDRC (National Development & Reform Commission of China), which includes the possibility of establishing a final assembly line for single-aisle aircraft in China.
* Airbus says it’s is committed to increasing its share of purchases in China within existing programs – up to $60 million/year beginning in 2007 and up to $120 million/year starting in 2010.
* In July 2005, Airbus inaugurated an engineering center in Beijing and has offered China the opportunity to take a 5% stake in the new A350 program.
See defense-aerospace.com for further details regarding recent Airbus developments and agreements in China. In addition:
* EADS has chosen to make a long-term commitment to the Space sector in China. In the scientific sector, EADS ASTRIUM is an active player in the partnership between the CNES and the CNSA. Industrial cooperation has also been initiated in the field of space telecommunications.
* EADS, as the leader of a European offer, has been selected by two major Chinese industrial groups (CETC and CASIC) to propose and jointly build the architecture for a security system in anticipation of the Beijing 2008 Olympic Games.
“EADS has clearly adopted a long-term partnership perspective and wants to take an active part in Chinese aeronautic and space sector growth and development,” announced Noel Forgeard and Tom Enders, co-CEOs of EADS. “The development of EADS’ industrial presence in China is an important step for the Group and demonstrates the significant role that China plays in EADS’ global expansion strategy,” declared Jean-Paul Gut, COO of EADS.
Popstscript: Although EADS has a Franco-German center of gravity, its current position on arms sales to China is that it will not engage in arms sales even if the EU embargo is lifted, as it does not wish to jeopardize markets in the USA. This runs counter to the prevailing political winds in France and, until recently, Germany.