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The European aircraft maker Airbus said on Thursday it planned to deliver 300 A320 planes from an assembly line in northern port city Tianjin by 2016 to satisfy China's demand.

The assembly plant is a joint venture between Airbus and Tianjin Zhongtian Aviation Industry Investment Co., a Chinese alliance of China Aviation Industry Corp I, China Aviation Industry Corp II and Tianjin Bonded Zone Investment Co.

The two sides officially signed the contract to set up the joint venture at a ceremony held in Beijing to mark the occasion.

Airbus will hold a majority 51 percent stake in the Tianjin assembly facility, with the rest divided among the three Chinese companies, according to the contract.

The Tianjin Bonded Zone Investment Co. will have 60 percent of the rest stake on behalf of the Tianjin municipal government, while the China Aviation Industry Corp I and II will both have 20 percent.

However, the two sides kept silence on the total investment in the project. Analysts said earlier in estimation it would be at eight to 10 billion yuan (US$1.04 to 1.3 billion).

"The Tianjin assembly line intends to deliver its first A320 plane in the first half of 2009, and we expect it to assemble four aircrafts a month from 2011," said Marc Bertiaux, vice president of Airbus who is in charge of coordination with China.

Airbus said the Tian project would continue operation till 2015 at the earliest, and a total of 300 A320 planes would be assembled at the beginning of 2016.

"We would discuss with the Chinese side about further cooperation in Tianjin, if the above-mentioned goal were met," said Marc Bertiaux.

The general manager of the Tianjin joint venture would come from Airbus, and managers in charge of operation, quality and accounting would also be appointed by Airbus.

The Chinese side would nominate the vice general manager and heads of other supporting departments such as human resources.

(For more biz stories, please visit Industry Updates)