SHANGHAI (Reuters) - Boeing Co (BA.N) will invest $33 million (24.67 million pounds) for a majority stake in a joint venture with Commercial Aircraft Corp of China (COMAC) that will oversee the U.S. planemaker’s new 737 completion plant in China, the China Daily reported.
The firms had signed an agreement to set up the joint venture with registered capital of $55 million, the state-run newspaper said on Wednesday. Boeing would take a 60 percent share, while COMAC would invest $22 million for the remainder.
Construction of the factory in the eastern city of Zhoushan began in May. It would install interiors and paint liveries.
Boeing had not previously disclosed how much it would invest in its first overseas completion and delivery centre outside the United States. It aims to deliver 100 planes a year.
The China Daily, citing COMAC, added that the Chinese planemaker would participate in the completion tasks with Boeing employees, but how the two sides would share the work was still unknown. The delivery centre would be owned by Boeing.
Boeing and its European rival Airbus (AIR.PA) are expanding their footprint in China as they vie for orders in the world’s fastest growing aviation market. Airbus last week opened its Chinese completion plant for A330 jets in the eastern city of Tianjin.
(This version of the story corrects second paragraph to show COMAC investment is $22 million, not $40 million)
Reporting by Brenda Goh; Editing by Stephen Coates