Beijing- US aircraft giant Boeing will set up its first overseas factory in eastern China, aiming to deliver 100 Boeing 737 planes a year, China’s official Xinhua news agency said.

Boeing and Chinese aviation manufacturer Commercial Aircraft Corporation of China Ltd (COMAC) will start to build a Boeing 737 completion center in eastern China’s Zhoushan city at the end of March, scheduled to make its first delivery in 2018.

This is Boeing’s first overseas facility as part of its 737 production system, and designed to deliver 100 Boeing 737 planes a year.

In the joint-venture completion center, Boeing’s 737 aircraft will be installed with flight entertainment systems and seats.

The plant in Zhoushan, 287 km southeast of Shanghai, also provides services such as coating, repair and maintenance of Boeing aircraft.

The plant, which will install interiors and paint liveries, will create 2,000 jobs, Xinhua added. It will be Boeing’s first 737 completion factory outside the United States.

Boeing and COMAC signed an agreement in October 2016 to set up the Zhoushan plant, which will consist of two parts: the 737 completion center, a joint venture of Boeing and COMAC, and the 737 delivery center owned by Boeing, Xinhua noted.

Notably, Airbus, the French plane manufacturer has already established its assembly line factory in 1994 in Tianjin city located close to Beijing.