Airbus SE expanded its industrial presence in the United States on Wednesday, starting construction on a new assembly plant for the Canadian developed A220 jetliner, 18 months after agreeing to buy the plane in the midst of a U.S.-Ottawa trade dispute.

The European plane-maker said it would invest $300 million and create 400 jobs in the plant, to be built in the port of Mobile alongside an existing assembly line for its best-selling A320 passenger jet, which already employs 700 people.

Alabama and the city of Mobile would provide a total of some $26 million in state and municipal incentives to support the development, officials said.