The Shanghai Aircraft Manufacturing Factory based in this largest economic center of east China on Monday signed a contract with Airbus, from the European Union.

Under the contract, the Shanghai factory, which is affiliated to China Aviation Industry Corporation 1 (AVIC 1), will produce the doorframes of the front cargo compartments for the A320 series, a local newspaper reported on Tuesday.

The project involves doorframes for 1,000 airplanes, or 16 million U.S. dollars worth, the Wenhui Daily said. The factory will deliver products for 16 aeroplanes at most on a monthly basis.

This is the first productive cooperation between the Shanghai factory and Airbus, the newspaper added.

The Shanghai factory also produces parts for Boeing.

Early this year, Airbus announced it would build an A320 assembly facility in China.

(Xinhua News Agency February 23, 2006)