BEIJING - Just seven years ago nobody expected Airbus would build an aircraft final-assembly line on what was then a cabbage patch in Tianjin, a northern coastal city in China.

But nothing is impossible when doing business in China, said Laurence Barron, Airbus China president.

The factory, Airbus' first aircraft final assembly line outside Europe, is likely to deliver aircraft to foreign airlines in the future and even produce the A320neo, a revamp of the A320 to be launched in October 2015, at some stage, Barron said. The A320neo incorporates more efficient engines and large "Sharklet" wing tip devices, that together will deliver up to 15 percent in fuel savings.

But Barron said it will happen only if Airbus and its Chinese partners decide to renew and expand their production agreement for the Tianjin factory in the coming 18 months.

The factory is a joint venture 51 percent controlled by Airbus. The remaining shares are split among a Chinese consortium composed of Tianjin Free Trade Zone, representing the local government, and China Aviation Industry Corp. The production agreement runs until 2016.

The plant delivered its first A320 in June 2009 and has so far delivered more than 50 A320 family planes to nine Chinese airlines. The factory is now able to assemble three jets a month and it is ramping up its production as scheduled.

"The Tianjin project has always kept with our business plan. In fact it has always been slightly better than the business plan," Barron said.

"It has always been accepted that at some stage the factory will deliver aircraft to airlines in neighboring countries. It should be more attractive to come to Tianjin if you are based in Asia than going all the way to Europe," he added.

But Barron said a key factor would be making sure foreign airlines accept that there is no difference between aircraft assembled in Tianjin and jets produced in Europe.

"Chinese airlines have now accepted this. But at the beginning they were also not too keen and were suspicious about the quality. So we still have some work to communicate what we do here in Tianjin is really the same quality," said Barron, who witnessed the whole process of the birth of the project.

Taking delivery of an aircraft assembled in Tianjin could save a Chinese airline nearly 1 million yuan ($154,658), when compared with flying a cabin crew to Europe just to take delivery of the aircraft, Wang Junjin, chairman of Juneyao Airlines, told China Daily recently when receiving its third A320 aircraft assembled in Tianjin.

"There is no difference in quality at all. We will continue to come to Tianjin in the future," Wang said.

China Daily