The world's largest aircraft manufacturer, Europe-based Airbus, says it is planning to build its first U.S. manufacturing plant.

Airbus said Monday it intends to open an assembly plant in the southern U.S. city of Mobile, Alabama. The company said it plans to start producing A320 passenger jets by 2015 — a direct challenge to its American rival, Boeing Company.

Airbus, based in Toulouse, France, said it plans to build 40 to 50 airplanes a year at the U.S. factory by 2018. The company said it expects to hire 1,000 workers to build the $88 million jetliners, which are widely used by major airlines.

Last year, Airbus delivered 534 aircraft, compared to 477 for Boeing, the world's second biggest commercial jet manufacturer.