Quality | 2009.08.14
Government lends £340m to Airbus
Ministers also hope the investment will help create and sustain more than 5,000 jobs within the supply chain across the UK
The government is pumping £340m into plane-maker Airbus in a bid to protect thousands of jobs.
The business secretary, Lord Mandelson, made the announcement on a visit to the factory in Bristol where wings for the new A350 passenger aircraft will be made.
The loan will create and sustain more than 1,200 jobs at Filton and at Airbus UK\'s Broughton plant in north Wales. Ministers also hope it will help create and sustain more than 5,000 jobs within the supply chain across the UK.
The news follows Rolls-Royce\'s announcement last month that it will open four new factories in the UK , creating or saving 800 jobs, helped by the government\'s building Britain\'s future programme.
The French and German governments have already announced support for the A350 and Spain, the other Airbus partner country, is in discussions with Airbus.
Mandelson said: "This agreement is excellent news for the UK aerospace sector and for the thousands of British workers within Airbus and its UK-based supply chain.
"The UK\'s aerospace industry is world-class and capable of competing successfully with companies across the world. We recognise the vital role Airbus, and its supply chain, play in the UK."
He went on: "Aerospace is a sector that we are rightly proud of in the UK. It stimulates innovation across industry, demonstrates our capability to work with the most advanced technologies, and provides high-quality, highly skilled employment. It is a sector at the heart of our advanced manufacturing strategy.
"This agreement is further evidence of this government\'s long-term commitment to the UK aerospace industry and its future success. Aerospace is one of the UK manufacturing\'s crown jewels, and manufacturing is one of the UK economy\'s crown jewels."
Airbus\'s president and chief executive, Tom Enders, said: "We welcome the UK government\'s decision to invest in the A350 XWB (extra-wide bodied), the most advanced, innovative, and eco-efficient aircraft in its market segment.
"This partnership with the UK government means that the UK taxpayer can expect a sound return on their investment, and ensure the aviation industry continues to thrive in Europe and around the world."
Ian Godden, chief executive of the Society of British Aerospace Companies, said: "The announcement is very welcome. The Airbus A350 XWB is an extremely important programme for the future of the UK aerospace industry and this investment secures vital work across the sector.
"Over 5,000 jobs are created or supported across the UK supply chain by the A350 programme. The significant technological advances of the composite materials being used means that the importance of the A350 programme in developing the skills and technology for the future sustainability of the UK aerospace industry cannot be exaggerated."
For more information, please visit
http://www.guardian.co.uk/business/2009/aug/14/airbus-jobs-a350-government
