Airbus partners with Tianjin Free Trade Zone to establish a Logistics Centre in Tianjin

Direct News Source

29-Oct-2009 Airbus signed today a Memorandum of Understanding (MoU) with Tianjin Free Trade Zone (TJFTZ) on the establishment of a Logistics Centre in Tianjin to optimise the supply chain management for all Airbus' industrial cooperation projects in the country.

The MoU was signed by Bruno Gutierres, Head of Airbus Transportation and William Wei, Vice President of Tianijn Port Free Trade Zone Administrative Committee, in the presence of Louis Gallois, CEO of EADS, Airbus' parent company, He Lifeng, Deputy Party Secretary of Tianjin and Wang Zhiping, Vice Mayor of Tianjin.

Airbus intends to organize its supply chain based on modern and efficient methods that have been deployed and tested in Europe and the USA in order to sustain the growth of its industrial activities in China. The Logistics Centre will serve as a hub to manage the transportation to and from China of all goods that are needed for the success of Airbus industrial projects in China.

According to the MoU, the project has been divided into three phases. In the first phase, both parties will jointly establish the logistics and customs processes as well as any other action necessary to launch the project. As early as January 2010, the logistics centre will start operation in a temporary location in the TJFTZ Comprehensive Bonded Area. The first step enables simple logistics operations for the Wing Equipping project in Tianjin with XAIC and the Manufacturing Centre with Hafei in Harbin.

In the second phase, a joint working team comprising Airbus, TJFTZ and Tianjin Customs will develop a Feasibility Study on the complete implementation of the project. A permanent location of the Logistics Centre will be decided during this period.

Finally, in phase 3, which is expected to be launched in March 2010, the Logistics Centre will be fully operational in the permanent location. The services of the Logistics Centre will be extended to cover all Airbus industrial packages in China, including the FALC.

Today, six Chinese aviation companies are directly involved in manufacturing parts and components for Airbus aircraft. These companies are located in different cities including Harbin, Shenyang, Tianjin, Xi'an, Chengdu and Shanghai, and each supply chain is organised separately.

"As Airbus is expanding its industrial activities in China, a logistics centre will help us optimize the supply chain for all our projects in a more streamlined way, while reducing costs and increasing efficiency. There were many reasons why we selected Tianjin as the location for our new Logistics Centre; among them, its geographic advantages as a major sea port, its proximity to several Airbus cooperation projects in China, FALC, and soon Wing equipping, and its excellent infrastructure," said Laurence Barron, Airbus China President.

"Following the success of the various Airbus industrial cooperation projects in Tianjin, we are pleased to welcome Airbus Logistics Centre Tianjin. The success of the Airbus A320 Family Final Assembly Line China project has attracted more and more international as well as domestic aviation companies to Tianjin. The establishment of the Airbus Logistics Centre will further promote the development of Tianjin as one of the country's major aviation cities," said He Lifeng, Deputy Party Secretary of Tianjin.