Mubasher: Boeing on Friday said that operations at its 737 completion factory in China would begin next month.

Air China would receive the first plane produced in the plant in the eastern city of Zhoushan.

The plant would only produce one aircraft this year, and then production would gradually increase until it reaches a delivery target off 100 planes per year, state-run news agency ThePaper.cn reported, citing Boeing’s president of China operations John Bruns.

In addition, Boeing also renewed production contracts for the 737 with AVIC Aircraft and Shanghai Aircraft Manufacturing and other five new Chinese firms as eligible suppliers during a ceremony at the Zhoushan plant, ThePaper.cn said.

The US plane manufacturer invested $33 million last year in a joint venture (JV) with the Commercial Aircraft Corp of China (COMAC) to man the factory, taking a majority stake.

 Boeing and its European rival Airbus, which has a A330 completion factory in the eastern city of Tianjin, are expanding their presence in China as both airplane makers competing for orders in the rapidly growing market.