Airbus to set up JV in China

European plane maker Airbus expects to launch a joint venture in China to make aircraft components, as part of its efforts to carve a larger slice of the world's fastest growing aircraft market.

"We are studying the possibility of setting up the venture with AVIC II (China Aviation Industry Corporation II) and expect to finalize the deal as early as August," Laurence Barron, president of Airbus China, said, but declined to elaborate.

Airbus expects to use the joint venture to produce composite material parts for its Airbus A350 model. The company last year agreed to have up to 5 percent of the design and manufacturing work of the model done in China.