Airbus to assemble new model at China factory

Airbus SAS said it expects to build the planned A320neo jet in China, as the plane-maker holds discussions about extending the life of its first assembly line outside Europe.

Laurence Barron, Airbus' China head, said on Tuesday in Zhuhai that the company is in talks with partners about operating the Tianjin facility through 2025. The factory already makes the current A320 model. "We can expect to see the Neo being assembled here in China in the near future," Barron said.

The aircraft is due to enter service in 2015. Airbus also builds A320s in France and Germany, and is planning to open a factory in Alabama.