Reuters reports that Boeing and Commercial Aircraft Corp of China Ltd (COMAC) have signed an agreement to open a Boeing 737 completion facility in the coastal city of Zhoushan. The deal was reportedly signed at a ceremony on 28th October.

The signing comes just over one year after an initial agreement between the two companies to open a centre to install interiors, paint liveries and deliver 737 aircraft to Chinese customers. That agreement was announced during a visit to Seattle by China President Xi Jinping in September last year, 

The facility is Boeing's first 737 completion facility outside the United States and underlines the growing importance of the Chinese market in coming years. Airbus already has two plants in China.

The new centre will significantly expand Boeing's collaboration with China's aviation industry while also enabling future production rate increases at Boeing's 737 final assembly factory in Renton, Washington.

Boeing also announced in September 2015 a framework agreement with Aviation Industry Corp. of China (AVIC) to broaden their long-term collaboration to support Boeing's commercial aircraft programmes. The companies said they planned to further advance AVIC's manufacturing capabilities by adding major component and assembly work packages; strengthening leadership; and developing AVIC's broad aviation infrastructure and business practices, including supply chain management.