Airbus building vertical integration supply chain


Airbus has constantly expanded its supply chain network in China, its largest market. So far, it has more than 200 suppliers in China, including 23 tier-one suppliers from whom Airbus purchases parts and components directly.

BEIJING: European aircraft manufacturer Airbus said it has been rebuilding and diversifying the layout of its global supply chain since the outbreak of the Covid-19 pandemic, and is willing to see more Chinese enterprises become its suppliers as it is forming a “vertical integration supply chain in China”.

Over the past decade, Airbus has constantly expanded its supply chain network in China, its largest market. So far, it has more than 200 suppliers in China, including 23 tier-one suppliers from whom Airbus purchases parts and components directly.

The tier-one suppliers are located in Tianjin; Xi’an, Shaanxi province; Chengdu, Sichuan province; Harbin, Heilongjiang province; Shenyang, Liaoning province; Hangzhou, Zhejiang province; and Taichung, Taiwan province, Airbus said.

“We are forming a vertical integration supply chain in China, meaning we purchase raw materials and parts, do the parts assembly and deliver the aircraft in China to lower costs of transportation and raise efficiency,” said Yang Xiaoyu, Airbus’ head of flyable procurement in China and East Asia. — China Daily/ANN

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