MOBILE, AL—Airbus has begun construction of a new $300 million assembly plant here to manufacture the A220 jetliner. The project is expected to create 432 full-time jobs.

Airbus already produces the larger A320 jetliner in Mobile. That facility, which opened in 2015, employs 700 people. It is producing 4.5 aircraft per month and could be making as many as five per month by the end of the year. The plant delivered its 100th jetliner last month.

The new line is expected to assemble four A220s a month, with the first jet to be delivered in 2020. U.S. airlines have already ordered 250 of the jets, which can seat 110 to 130 people.

Alabama and the city of Mobile will provide some $26 million in state and municipal incentives to support the development.

“The United States is one of the largest markets for us and this is our largest industrial base in the U.S. We have the skills and employees and it is the logical thing to do,” Airbus Americas CEO Jeff Knittel said.