Boeing has opened a two-bay aircraft maintenance, repair and overhaul (MRO) hangar at Pudong International Airport as scheduled despite the sluggish aviation market, China Daily reported on Oct. 16.

The hangar, capable of housing two Boeing 747 airplanes, is also the first MRO facility at the airport, said the newspaper.

The factory is operated by Boeing Shanghai Aviation Services Co., a joint venture in which the U.S. aircraft manufacturer controls a 60-percent stake, while Shanghai Airport Authority and Shanghai Airlines respectively hold the remaining 25-percent and 15-percent stake.

It is the first time Boeing has taken a controlling share in an MRO joint venture. It is also China's first foreign-controlled MRO facility, according to the newspaper.

The joint venture was launched in 2006 and used to lease a hangar from Shanghai Airlines to perform line maintenance and heavy maintenance check services.

Boeing declined to say how much investment was involved.

The factory now provides an MRO service to Boeing 737 airplanes and will expand its service offerings to twin-aisle aircraft. Another major task is to convert B767 passenger jets into freighters. But Boeing declined to give a timeline for the passenger-to-freighter conversion project.

The new facility is expected to improve Pudong airport's service during the World Expo to be held next year in Shanghai, the newspaper said, citing Li Derun, executive vice-president of Shanghai Airport Authority.