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In 2005, Boeing selected a number of Chinese manufacturers to be suppliers to the 787 program. These contracts marked several mile-stones in Boeing’s relationship with China: For the first time, Chinese firms were selected as exclusive, single-source suppliers for a major new airliner, and also for the first time, essential composite structures were subcontracted to Chinese suppliers. According to Boeing, the value of the 787 packages in China could reach several hundred million dollars over the lifetime of the program. In addition, Boeing for the first time “introduced” its global network of suppliers to Chinese firms, “encour-aging them to engage with Chinese industry.” As a result, China has gained a “very significant, expanding role in the Boeing supplier net-work at all levels” (“Boeing’s Investments in China,” 2010).
Cytec Engineered Materials
Cytec Engineered Materials operates an aerospace composite-materi-als production facility in Shanghai to supply carbon fiber epoxy pre-preg material for commercial transport programs throughout the Asia-Pacific region (“Cytec Eyes Jumbo Jet Options,” 2009).
Eaton Corporation
Eaton began its operations in China in 1993 with a joint venture in Shandong to manufacture steering-control units and hydraulic motors, a venture that it subsequently acquired. Today, Eaton operates roughly 30 production facilities in China, the majority of which are wholly
Table 4.3 Current Boeing Work Packages and Procurement at Chinese-Owned Enterprises
Product Group
Subcontractor 737 Series 747 Series 767 Series 777 Series 787 Series Misc.
Baoji Group Ltd., Shaanxi (since 2006)
Boeing Tianjin Composites Co., Tianjin (Boeing joint venture since 2002)
Changhe Aircraft Industries Co., Jingdezhen, Jiangxi (since 2008)
Chengdu Commercial Aircraft, Sichuan (since 2005) Composite panels and parts, including flight deck, closeout panels, dorsal fin, wing-to-body fairing, cover panels, wing fixed trailing edge, wing fixed leading edge, tail cone, interior panels
Forward entry doors, overwing  exit doors Misc. composite panels, door liners, fixed trailing edge
747-8 ailerons and spoilers, single source (contracted 2007, first delivery 2009); 747-8 horizontal stabilizer parts and subassemblies  (contracted 2007) wing fixed trailing edges, dry bay barriers, empennage panels
Components for 767-300 freighter conversion wing fixed trailing edges, dry bay barriers, flight-deck interior panels, empennage panels Titanium ingot, plate, and sheet
Trailing edge panels for the vertical fin (2005), additional panels (2007), wing-to-body fairing supplier assistance
Composite rudder, single source (contracted 2005, first parts delivery 2006, first full rudder 2007)
The Role of Foreign Firms  73
Table 4.3—Continued
Product Group
Subcontractor 737 Series 747 Series 767 Series 777 Series 787 Series Misc.
　
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