China leaning to Tianjin as Airbus site - France

BEIJING, May 26 (Reuters) The Chinese government favours the northern port city of Tianjin as the site of a plant to assemble the Airbus A320 family of single-aisle aircraft, French Transport Minister Dominique Perben said on Friday.

Speaking to reporters, Perben stressed that no final decision had been taken and that Airbus, 80 percent owned by Franco-German firm European Aeronautic Defence&Space Co. N.V., was still in talks with the Chinese authorities.

''It's up to the Chinese. It's not for the French government to decide where the plant goes,'' he said.

But Perben said he had got the impression at high-level meetings in Beijing on Thursday that Tianjin would get the nod.

A formal decision is not likely until September.

''There were two sites in the running. Now it seems to be just one,'' Perben said.

He did not name them, but Tianjin has been competing for the plant with Shanghai, Xian in the northwest and Zhuhai in the south.

Airbus hopes a local plant will give it an edge over rival Boeing as they compete to meet a projected surge in Chinese demand for short-haul aircraft over the next 10 to 20 years.

Airbus and French officials have said China is likely to take a 5 to 10 percent stake in a programme to replace the A320.

EADS co-Chief Executive Thomas Enders was quoted by Germany's Focus magazine in April as saying China could start building A320 family aircraft at the end of 2008 with the first deliveries as early as 2010.

The plant would have the capacity to produce up to four planes a month.

The A320 family comprises the A318, A319, A320 and A321, with from about 100 to 200 seats.

British defence contractor BAE Systems Plc. owns 20 percent of Airbus.

REUTERS DH RN0728