AIRBUS SAS said yesterday it planned to deliver 300 A320 planes from an assembly line in the northern port city of Tianjin in China by 2016 to satisfy the country's demand.

The assembly plant is a joint venture between Airbus and Tianjin Zhongtian Aviation Industry Investment Co, an alliance of China Aviation Industry Corp I, China Aviation Industry Corp II and Tianjin Bonded Zone Investment Co.

The two sides officially signed the contract to set up the joint venture at a ceremony held in Beijing to mark the occasion.

Airbus will hold a majority 51 percent stake in the Tianjin assembly facility, its first outside Europe, with the remainder divided among the three Chinese companies, according to the contract.

The Tianjin Bonded Zone Investment Co will have 60 percent of the remaining stake on behalf of the Tianjin municipal government, while China Aviation Industry Corp I and II will take 20 percent each.

However, the two parties were tight-lipped on the total investment in the project. Analysts earlier estimated it would be between eight and 10 billion yuan (US$1.3 billion).

"The Tianjin assembly line intends to deliver its first A320 plane in the first half of 2009, and we expect it to assemble four aircraft a month from 2011," said Marc Bertiaux, vice president of Airbus who is in charge of coordination with China.

The European aircraft maker said the Tianjin project would continue operations till 2015 at the earliest, and a total of 300 A320 planes would be assembled at the beginning of 2016.

"We would discuss with the Chinese side about further cooperation in Tianjin, if the above-mentioned goals were met," said Bertiaux.

The general manager of the Tianjin joint venture would come from Airbus, and managers in charge of operation, quality and accounting would also be appointed by Airbus.

The Chinese side would nominate the vice general manager and heads of other supporting departments such as human resources.

"The Tianjin assembly line is an important piece in the global strategy of Airbus, and the A320 planes to be assembled and delivered in China will be exactly the same as those made in Europe," said Philip Lin, vice president of Airbus China Co Ltd.