The Korea Herald

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Airbus to build first U.S. assembly plant

By Korea Herald

Published : July 4, 2012 - 15:37

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MOBILE, Alabama (AP) ― European aerospace giant Airbus will build its first airplane factory in the U.S., aiming to compete better against archrival Boeing in the battle to dominate the global aviation industry.

The Mobile, Alabama, factory ― due to start up in 2015 ― is expected to employ 1,000 people when it reaches full production two years later. Airbus hopes the plant will lower costs and improve its chances of winning business from the U.S. military. Last year, Boeing beat out Airbus’ parent for a major Air Force contract.

“We needed to be visible in the States under the Airbus flag,” Airbus President and CEO Fabrice Bregier said.

The new $600 million plant will make A320 passenger jets, which compete head-to-head with Boeing’s 737. Those planes are the minivans of the airline world ― widely-used people-haulers generally flown on short- and medium-haul trips. They generally carry about 150 passengers.