Boeing Planning 737 Plant In China

Boeing chief executive Dennis Muilenburg sees scope for additional 737 work going to China as the company continues to increase production rates, though any changes would not come at the expense of US jobs.

"As we ramp up capabilities in China, including additional 737-related work, the actions that we'll take are actions that will also allow us to grow jobs here in the US," Muilenburg said.

In a memo to employees on Tuesday, Boeing commercial planes chief executive Ray Conner said the company was negotiating a strategic partnership and sales with China.

"These discussions are at a sensitive stage," Conner said in the memo. "I hope (it) will be a win for Boeing, a win for the Puget Sound, and a win for our stakeholders. I want to assure you that agreements we may reach with our Chinese partners will not result in layoffs or reduce employment for the 737 programme in Washington state."

Conner and Muilenburg did not discuss specifics of Boeing's proposed 737 finishing facility in China, a step expected to be announced during Chinese President Xi Jinping's visit to Seattle this week.

Boeing's plan to set up a facility in China that would paint, finish and deliver 737s built at its factory near Seattle has provoked its largest union, representing about 35,000 Boeing employees. The International Association of Machinists said Boeing has discussed its desire to expand collaboration with China but shared no details. "Any shift of aerospace jobs from our bargaining unit or Washington State causes grave concern," the union has said.

Muilenburg said Boeing has had operations in China for 42 years and is continuing to invest to expand its capabilities there. Boeing is investing "in a way that allows us to grow jobs around the world," he said,.

"I think it's really important that as we think about that collaboration that it's seen as one that is beneficial to both countries."