Boeing Co is planning to move final production work for some 737 jetliners to a new facility in China, and is timing an announcement to coincide with the first U.S. state visit of China's President, Xi Jinping, later this month, according to a published report.
Boeing declined to comment on the report, but issued a statement that left open the possibility, saying that it is always looking to expand and improve productivity.
"One way we do this is by working with partners around the world, including in China, our largest international market," the company said.
But the move would be in line with increased global sourcing of aerospace parts and supplies. Foreign contracts and operations are seen as helpful in winning fierce sales competitions with European rival Airbus Group NV.
Airbus was due to inaugurate this weekend its first US final assembly line, in Mobile, Alabama. The $600 million factory allows Airbus to lay claim to employing American workers, as foreign automakers did after building US plants.
Airbus, with major manufacturing in France, also has final assembly lines in Germany and China.
Three Japanese industrial giants produce portions of Boeing's 777 and 787 aircraft, and Japan's major airlines have been almost exclusively Boeing customers.
According to Aviation Week, Boeing's China facility would paint 737 aircraft built at its Renton, Washington, factory, conduct flight testing, and perform some interior installation.
But the move could conflict with a deal Boeing struck with machinists in 2011.
