Boeing has signed a ten-year contract extension with Chinese aircraft maker Shanghai Aircraft Manufacturing to supply horizontal stabilisers for Boeing 737 aircraft.

The contract will be operational as of October 2011 and the value of the deal is expected to be in excess of $100m.

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Horizontal stabilisers are fixed on the tail of aircraft for balance.

Shanghai Aircraft Manufacturing has been supplying horizontal stabilisers for the 737 since the late 1990s and the Chinese company has delivered more than 2,000 horizontal stabilisers to date.

The contract will help Boeing meet rising production rates of the 737 and strengthen its presence in a region where the company expects to see rapid growth.

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