Boeing will establish a Chinese factory for completing the 737 jetliner for local delivery, its first such facility abroad.

The U.S. aircraft maker aims to begin operations at the facility in 2018 or 2019 with joint-venture partner Commercial Aircraft Corp. of China, or Comac, according to Ihssane Mounir, Boeing's senior vice president of sales for Northeast Asia.

The facility will install seats, kitchen facilities and lavatories as well as handle exterior painting. The location has yet to be decided.

State-owned Comac is developing the C919, a small aircraft in the same class as the 737. Although there are concerns about technology leaks, Mounir said Boeing will protect technology it relies on to be competitive while working with its Chinese partner on the rest of the 737. Boeing already has strong ties with China on the manufacturing front, including procurement of aircraft parts from that country.

China is forecast to supplant the U.S. as the largest aircraft market within a few years. Boeing projects that in the two decades until 2035, the world will need 39,620 new planes. China will need at least 6,000 aircraft worth some US$1 trillion.

Boeing is looking to capitalize on the country's abundant demand. European rival Airbus already has a final assembly line for its A320 jetliner in Tianjin.