China Aviation Industry Corp, known as Avic I, the largest Chinese planemaker, is bidding to invest in or buy all six Airbus SAS plants, including the Filton location near Bristol, the Guardian reported, citing the company's president.

"If we succeed in buying or partnering these six facilities, we will develop them and be a more competitive supplier to Airbus,'' Lin Zuo Ming told the Guardian, according to Bloomberg.

Airbus is auctioning off the plants, located in England, France and Germany, under plans to save more than 2 billion euros (US$2.7 billion) a year, the Guardian said.

China Aviation also reached an agreement with Bombardier Inc yesterday to jointly develop midsize jetliners.

China Aviation plans to invest US$400 million for research, development, equipment and new facilities to build parts for Bombardier's planned C series aircraft in China. Bombardier will invest US$100 million to help develop AVIC I's plane, the ARJ21-900, the companies said in a joint announcement from the Paris air show yesterday.

Bombardier, the world's third largest maker of commercial aircraft, and AVIC I plan to use common parts for the two aircraft to reduce costs. The Bombardier C series would challenge smaller models of planes built by Boeing Co and Airbus SAS. Bombardier had planned for C Series planes to enter service in 2010.

The Montreal-based company shelved the C series program in 2006 after failing to sign up any airlines. Now it says it will decide next year whether to proceed with development.

The C series is a fuel-efficient jet with 100 to 149 seats, Bombardier said on May 29. It would compete against Seattle-based Boeing's 737-600, which seats 110 to 132 people, and Toulouse, France-based Airbus's 107-seat A318 and 124-seat A319.

The ARJ21-900 regional jet that is forecast for delivery in 2011. State-owned China Aviation, based in Beijing, employs 230,000 people.

Bombardier has moved production into lower-cost countries, such as Mexico and Ireland, to make up for rising costs related to the strengthening of the Canadian dollar against the US dollar. Canada's currency reached a 30-year high of 94.79 US cents two weeks ago.

The two companies decided to increase their relationship after Bombardier contracted with two AVIC I units to provide parts for amphibious aircraft and is turboprop airplanes.

Airbus is the world's largest maker of commercial aircraft, followed by Boeing. Bombardier's widely traded Class B shares rose 17 cents, or 2.7 percent, to C$6.54 at 5:30pm yesterday in Toronto Stock Exchange composite trading.