Boeing Company intends to complete some of its 737 jets by the end of this year, by having a new facility in China. Chief Executive Dennis Muilenburg said Wednesday that construction is under way on a finishing center near Shanghai. He added, “Boeing has needs to compete with rival Airbus SE, which already builds jets in China.”
China accounts for a fifth of Boeing’s jetliner deliveries. The new facility to install seats and other fittings such as in-flight entertainment systems had drawn scrutiny citing it as an example of U.S. jobs being moved overseas. Mr. Muilenburg has said such overseas facilities aren’t a direct threat to the U.S. jobs, and will help protect and expand domestic employment. He said the effort is an essential part of doing business in China. He further commented on a post-earnings that reveales Boeing’s first quarter results has exceeded past analysts’ expectations, and as the company boosted its full-year guidance for profits and operating cash flow.
Boeing will continue assembling 737s at its plant near Seattle but send some planes to China for completion at the new plant, a joint venture with the state-controlled Commercial Aircraft Corp. of China Ltd.