Site Selection

JUL 2015

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Z O N E S O F O P P O R T U N I T Y S P E C I A L A D V E R T I S I N G S E C T I O N S I T E S E L E C T I O N J U LY 2 015 155 Getting Airborne One company's experience shows the power of designated zones to attract major investment. T hink foreign trade zones are just for moving stuf around? Tell that to the 700 company operations currently authorized for production in US Foreign Trade Zones. They range across 26 industry sectors, and include some of the world's most powerful corporations: GM, GE, Baxter, Flextronics, Daimler, Dow Corning, Areva, Siemens and Mitsubishi, to name a few. Airbus is another, and serves as a prime example of a multinational that knows how to take advantage of zones of opportunity around the world. Airbus Americas received its authorization in December 2014 to make commercial passenger aircraft at FTZ No. 82, located at the Mobile Aeroplex at Brookley in Mobile, Ala. Production under FTZ procedures could exempt Airbus from customs duty payments on the foreign status components used in export production. On its domestic sales, Airbus is able to choose the duty rates during customs entry procedures that apply to commercial passenger aircraft (duty rate 0 percent) for certain foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment. The Mobile operation is receiving a $600-million investment and will employ around 1,000 highly trained professionals. The company also takes advantage of zones in the nation that pioneered special economic zones (SEZs) in the 1980s: China. Last year, Airbus and its Chinese partners Tianjin Free Trade Zone and Aviation Industry Corporation of China (AVIC) agreed to extend their successful JV to assemble A320 Family aircraft in China (FALC) for an additional 10 years. Phase II will cover the period from 2016 to 2025, expand deliveries to the whole Asian region and include fnal assembly of the A320neo Family from 2017 onwards, and will involve expanded capabilities at the Tianjin Final Assembly Line. "We are going to celebrate 30 years of successful cooperation with our Chinese b y A D A M B R U N S a d a m . b r u n s @ s i t e s e l e c t i o n . c o m Attending the recent ceremony celebrating assembly of the 200th A320 Family aircraft by the Airbus Tianjin Final Assembly Line (FALC) were offcials from China and Europe, representatives of China Eastern Airlines, Airbus and its Chinese partners, Tianjin Free Trade Zone (TJFTZ) and Aviation Industry Corporation of China (AVIC). Photos courtesy of Airbus

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