Boeing, Commercial Aircraft Corp of China Ltd (COMAC) and Zhejiang Provincial government Firday signed an agreement in Hangzhou to open a Boeing 737 completion facility in the coastal city of Zhoushan, marking the first overseas plant of the U.S. manufacturer.

The new facility includes two sections - a completion center and a delivery center.

Boeing and COMAC will co-found the 737 completion center, which will cover cabin installation activities such as the set up of seats and in-flight entertainment systems, as well as painting, flight testing and aircraft maintenance; while the delivery center is exclusively owned by Boeing.

Last September, Boeing and COMAC signed an agreement to jointly establish a Boeing 737 completion center in China, after President Xi Jinping's visit in the Seattle area, home to the headquarters of Boeing Commercial Airplanes.

Currently, Boeing produces 42 B737 aircraft a month. By 2017, Boeing plans to produce 47 jets a month, and by 2019, the number is expected to reach 57, the company said.

The facility will help Boeing to increase the output of 737 aircraft and significantly expand the cooperation between Boeing and the aviation industry of China, the world's fastest growing aviation market.

The Zhoushan plant is expected to deliver 100 aircraft to all over the world annually.

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