SINGAPORE—Airbus, Tarmac Aerosave and the City of Chengdu have signed a joint-venture agreement to establish China’s first aircraft storage, disposal and recycling facility.

The agreement is a follow-up to a memorandum of understanding announced in January 2022. As a result, Tarmac Aerosave will gain 50% more in storage capacity. 

Spanning 717,000 m2 (7.7 million ft.2) and a storage capacity of 125 aircraft, the facility is expected to provide aircraft parking and storage, maintenance, upgrades, conversions, dismantling and recycling. It is on track to open by year-end 2023. 

Airbus says with this establishment, its presence in China will now cover the entire chain of an aircraft’s lifespan, from parts manufacturing and aircraft assembly in Tianjin to end-of-life services. 

Airbus subsidiary Satair will be responsible for acquisition of aging aircraft and trading and distributing the used parts. The company estimates 75% of the stored aircraft will have “a second life cycle.” 

Airbus and Safran hold 33.6% and 32.8% shares in Tarmac Aerosave, respectively, with the remaining held by waste management firm SUEZ. Tarmac Aerosave has two sites in France and one in Spain, with a combined storage capacity of 280 aircraft and 120 engines.