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Airbus to Open Second Assembly Lines in US and China Amid Trade Tensions

Airbus Expands Assembly Lines in the US and China Amid Heightened Trade Tensions
Airbus is preparing to inaugurate a second assembly line in the United States on October 13, followed closely by the expansion of a similar facility in China. These back-to-back ceremonies are strategically timed to navigate the complexities of the current trade environment, according to industry sources. The European planemaker is simultaneously negotiating a potential sale of up to 500 aircraft to China, a deal first reported earlier this year. However, sources indicate that only a portion of this order is expected to be finalized immediately to align with the factory expansions. Airbus has declined to comment on production details or pending orders.
Increasing Production Capacity Amid Geopolitical Sensitivities
As the world’s largest aircraft manufacturer, Airbus is ramping up production capacity to meet growing demand for its A320neo family, aiming to reach a monthly output of 75 jets by 2027. This expansion includes plans to double capacity at its Mobile, Alabama facility and its Tianjin plant in China. The announcement of these overseas expansions in 2022 and 2023 coincided with escalating trade tensions between Washington and Beijing, prompting Airbus and other European companies to carefully manage their positioning to avoid antagonizing either side. A source familiar with the matter noted the heightened sensitivity surrounding perceptions of the company’s moves.
The Alabama Department of Commerce confirmed last month that the new Mobile assembly line would open in October, marking a decade since Airbus established its first U.S. plant. The company has committed to making this facility more competitive relative to its European operations in France and Germany. Meanwhile, the second Chinese assembly line, initially slated to open at the end of the year with deliveries beginning in 2026, will now be inaugurated shortly after the Mobile ceremony. This scheduling underscores Airbus’s efforts to maintain a balanced approach between the two largest aviation markets.
Strategic Moves in Asia and Beyond
Recent reports indicate that Chinese airlines have begun allocating a 500-plane Airbus order, while Boeing awaits a comparable deal from China amid ongoing trade negotiations. In addition to its focus on the US and China, Airbus is actively courting India, with its board currently visiting the country. India has expressed interest in establishing an assembly line to support substantial orders from its domestic airlines, mirroring Airbus’s investments in China, a key strategic and economic competitor.
Despite this interest, Airbus has so far refrained from committing to an Indian assembly line due to constraints in global supply chains. Instead, the company is concentrating on military transport assembly in India and recently announced plans to establish a helicopter manufacturing plant in Vemagal, Karnataka, in partnership with Tata Advanced Systems.

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