"As the Airbus is deepening cooperation with its Chinese counterparts," the center is built as the pivot for its supply chain management in China," said Laurence Barron, president of Airbus China.

It is expected to harmonize the transport systems for all aircraft components flowing in and out of China, he said.

The center will begin operation at a temporary site in the Tianjin Port Bonded Area of the Binhai New Area in early 2010, before its permanent location is determined after next March, according to the MOU.

The Airbus now has six Chinese component suppliers, who are located across the country and handle their own logistics, he said. "The unified management can cut cost and raise business efficiency."

Tianjin has Airbus' first A320 aircraft final assembly line outside Europe, which is expected to deliver 11 planes by the end of this year.

The launch of the assembly line has attracted a great number of aviation companies at home and broad to settle in Tianjin, said He Lifeng, director of the administration commission of Binhai.

Airbus, one of the world's largest commercial plane makers, forecast its procurement of components and materials in China will rise to 200 million dollars by 2010, and 450 million dollars by 2015.