ZHENGZHOU, March 25 -- A Chinese firm has signed a framework agreement with Russian aircraft manufacturer Sukhoi to set up an assembly line in central China's Zhengzhou City for the production of the Sukhoi Superjet 100 (SSJ-100).

According to the deal, O-Bay Aircraft Co. will produce 100 SSJ-100 aircraft, said sources with O-Bay Tuesday.

The deal will cost O-Bay 20 billion yuan (3.2 billion U.S. dollars).

Sources with O-Bay said that the two companies plan to finalize the deal at a later date. If all goes to plan, the first jet to be produced in Zhengzhou is expected to be in two years.

O-Bay plans to team up with two other Chinese firms -- China Tianli Aviation Technology and Industry Co. and Shanghai Yuan-Fei Aviation Technology Co. -- to help with the project.

Once the deal is officially clinched, Zhengzhou, capital of Henan Province, will become the third city after Tianjin and Shanghai in China to boast an assembly line of aircraft with over 100 seats.

The Zhengzhou airport economic zone, where the assembly line is likely to be established, is China's first national experimental zone for airport-based economy.