Airbus will hold a controlling stake in its first aircraft assembly plant in China, which is ready to deliver its first batch of A320 planes as early as 2008, state media said on Monday.

The European aircraft maker will hold 51 percent of the plant, located in the eastern city of Tianjin. Total investment in the plant will initially be 5 billion yuan ($633 million) and will increase to between 8 to 10 billion yuan eventually, the Securities Times said, citing unnamed sources.

The Tianjin city government will hold a 29 percent stake in the plant, with the reminder shared by Chinese partners including Jiangxi Hongdu Aviation Industry Co. Ltd.

Airbus's China spokesman declined to comment.

Earlier this year, Airbus, 80 percent owned by Franco-German firm European Aeronautic Defence & Space Co. N.V., received official blessing to build the Airbus A320 narrow-body aircraft in China, in the hopes that a local plant would give it an edge over rival Boeing.

The plant would have the capacity to produce up to four planes a month.Assembly typically accounts for a small minority of aircraft production costs. Airbus first builds wings and much of its fuselages at separate sites, mostly in Germany, Britain and France, and then assembles them into the final aircraft at Toulouse and Hamburg.

All aircraft makers receive complete engines from engine companies, basically ready to bolt on.

The A320 family comprises the A318, A319, A320 and A321, with seating from about 100 to 200 passengers.

British defence contractor BAE Systems Plc. owns 20 percent of Airbus. ($1=7.9041 Yuan)