Mega deals cover aviation, railways and power
China orders 150 Airbus, to set up 
plant
Sino-French partnership cemented
China and France Thursday signed a series of deals covering aviation, 
railways and nuclear power in Beijing.
China Aviation Supplies Import and Export Group signed an agreement with 
Airbus for the purchase of 150 A320 aircraft and a letter of intent for 20 
A350XWB. 
The purchase represents the largest single transaction ever for Airbus in 
China, the company said yesterday. 
It is also the first time that China has showed interest in buying the A350, 
Airbus' long-range wide-body model which is available from 2012 and planned as 
competition to Boeing's new 787. 
 
 
   France's President Jacques Chirac 
 shakes hands with China's President Hu Jintao (R) during a signing 
 ceremony at the Great Hall of the People in Beijing October 26, 2006. 
 [Reuters] [More photos on Chirac visit] | 
The European aircraft maker also signed a framework agreement on the 
establishment of an A320 Family Final Assembly Line in Tianjin. 
According to the agreement, aircraft assembly in China will begin in early 
2009, with the aim of ramping up production to reach four aircraft per month by 
2011. 
"While the aircraft sections will continue to be produced in Europe, the 
establishment of such an assembly line, which will deliver aircraft to the same 
standards as those produced in Europe, is beneficial to both China and Europe," 
said Louis Gallois, Airbus president and chief executive officer, at the signing 
ceremony. 
In the field of railways, Alstom of France has signed a letter of intent with 
the Ministry of Railways to deliver the powerful 500 "Co-Co" (triple axle) 
locomotives. 
The deal is valued at 1.2 billion euros (US$1.5 billion) in total, with 
Alstom's share worth 300 million euros (US$375 million) and 900 million euros 
(US$1.13 billion) for its Chinese partner Datong Electric Locomotives. 
Alstom will design and produce the first 100 locomotives. Most of the 
production and quality control of the first 100 units will be carried out at its 
Belfort (France) plant. 
The remaining 400 locomotives will be built at the Datong Electric 
Locomotives site in China. This company has already partnered Alstom in a 2005 
contract to manufacture 180 BoBo electric (twin axle) locomotives. 
China Guangdong Nuclear Power Holding Co Ltd and the French national energy 
group, EDF, signed a deal on nuclear power production, plant construction and 
project development. EDF also signed an agreement with China Datang Corporation 
on power plants in China.