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Finally, although Boeing and many of its U.S.-based first-tier sup-pliers have established MRO service facilities in China, most of the customers who presently use these facilities are Chinese.
The major Western aviation-component production subcontracts
and servicing agreements in China that we were able to identify are described below.
U.S. Companies
Alcoa, Inc.
Alcoa operates a wholly owned fastening-systems manufacturing facil-ity in Suzhou (Alcoa Fastening Systems (Suzhou) Co., Ltd.), which began operations in 2006, as well as aerospace service and logistics facilities in Shanghai (“Alcoa in China”).
Alcoa has been a long-term supplier of aluminum products to Chi-nese aircraft manufacturers for their Boeing subcontracts. These man-ufacturers include the XAC for Boeing 737 vertical-tail assemblies and the Shanghai Aircraft Manufacturing Factory for Boeing 737 horizon-tal-stabilizer assemblies. However, none of these contracts was sourced from Alcoa’s China facilities. Instead, the aluminum was produced at facilities in Indiana, Arizona, and South Korea (“Alcoa Expands Sup-plier Relationship with Shanghai Aircraft of China,” 2005). Similarly, although Alcoa materials are used extensively on the COMAC ARJ21, all of them are sourced from facilities outside of China. These materials include advanced heat-treated sheet and plate alloys used throughout the aircraft from Alcoa’s Davenport, Iowa, plant; extrusions made from pro-prietary alloys and process technologies for the wing and fuselage string-ers and floor beams, sourced from Alcoa’s Lafayette, Indiana, Chandler, Arizona, and Changwon (South Korea) plants; and airfoil castings and structural components from Alcoa’s power and propulsion plants in Whitehall, Michigan, and Wichita Falls, Texas (“Alcoa Advanced Aerospace Alloys and Materials Used on China’s First Home-Produced Regional Jet, ARJ21-700,” 2008).
The Boeing Company
According to information released by Boeing, since the 1980s, Boeing has purchased more than $1.5 billion of aviation hardware and services from China. Today, Boeing and Boeing suppliers have active supplier contracts with China’s aviation industry valued at over $2.5 billion, and Boeing claims to be the largest foreign customer of the Chinese aviation manufacturing industry. All of Boeing’s commercial aircraft lines now incorporate parts and assemblies built in China. However, Boeing does not release annual procurement numbers (“Boeing in China,” 2007).
Current Boeing work packages and procurement at Chinese enter-prises include major parts (including some composite parts) on the 787 Dreamliner, the 747-8, and in particular, the 737NG. China is also the first location for the 747-400 Boeing Converted Freighter (BCF) program, which converts older 747 passenger aircraft into freighters (“Boeing in China,” 2007). Boeing’s subcontracting relationships in China are summarized in Table 4.3.
　
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