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Airbus opens second A320 assembly line in Tianjin amid growing demand from China

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Airbus opens second A320 assembly line in Tianjin amid growing demand from China
Policy
Webp oi
Guillaume Faury, CEO | Airbus

Airbus has opened a second final assembly line (FAL) for its A320-family aircraft in Tianjin, China. This development comes shortly after the company inaugurated another assembly line in Mobile, Alabama. The expansion is expected to increase Airbus A320neo production to 75 jets per month by 2027.

The move reflects Airbus's strategy to balance its dependence on US-based suppliers with a growing customer base in China. The company is currently negotiating a potential order of up to 500 jets with Chinese buyers. China remains Airbus's largest individual market, with over 2,200 aircraft operating in the country and an established industrial presence that includes the original Tianjin FAL, which began operations in 2008.

The recent inauguration ceremony for the new Tianjin facility was held without Western media coverage. This approach aligns with Airbus’s efforts to navigate ongoing trade tensions between the United States and China while maintaining strong ties with both markets.

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According to reports from Reuters, these twin expansions are designed to boost narrowbody production capacity and position Airbus closer to areas of high demand such as North America and China. Increasing local assembly capabilities also allows Airbus greater control over delivery slots and helps mitigate geopolitical risks.

Analysts note that while the expansion could introduce short-term inefficiencies and increased supplier coordination costs, it is expected to support long-term improvements in cost absorption and free cash flow as production stabilizes. Proximity to customers should also reduce logistical challenges and sustain pricing discipline due to continued slot scarcity.

Airbus aims for this investment in additional assembly lines—particularly in China—to strengthen its relationship with local airlines and potentially secure more orders for its popular A320neo family. The company faces challenges ramping up supply chains but views these steps as essential for meeting rising global demand for narrowbody aircraft.

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