Boeing Co's new 737 completion plant in China will aim to deliver 100 planes a year, with the first expected to take place in 2018, China's official Xinhua news agency said.

Construction on the factory, which Boeing will operate with Commercial Aircraft Corp of China Ltd (COMAC), will begin at the end of March, Xinhua reported citing the industrial aviation park in the coastal city of Zhoushan where the plant will be located.

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.

Its establishment comes as the U.S. planemaker and its European rival Airbus fiercely compete for orders in China. Airbus already has two plants in China.