PARIS - European planemaker Airbus said on Tuesday that it had decided to create new A321 production capacity at its French site in Toulouse, in order to cope with strong demand.

"We are enjoying an unprecedented high demand for our winning A320neo Family and especially its A321 Long Range (LR) and Xtra Long Range (XLR) derivatives," said Michael Schoellhorn, Airbus Chief Operating Officer.

Currently, the only European final assembly line for the A321 is at Airbus' Hamburg site in Germany, while the A321 is also being assembled and delivered in Alabama in the United States.

(Reporting by Sudip Kar-Gupta, editing by Louise Heavens) ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))