Airbus's spiritual plants in Belfast and Preswick finalize supply chain restructuring
Airbus has completed a major deal to acquire part of Spirit Aerosystems’ UK business, including Belfast’s historic short brother factory and the main operations of Prestwick as it aims to secure key components of its aircraft production lines.
The deal comes after Boeing's $4.7 billion takeover of Spirit last year, aiming to strengthen its supply chain. But the complex network of spiritual commitment to Boeing and Airbus takes months of delicate negotiations to unravel.
Under the terms of the announcement, Airbus will control the Belfast facility of the wing and fuselage section of the A220 (Airbus' 130-seat jet) and the Prestwick website, where components of the A320 and A350 program were manufactured. Other spiritual websites in the United States, France and Morocco are also included in the deal.
The transfer of these assets further consolidates the UK's role as a centre of excellence in the production of Airbus wings, joining its main plant in Broughton, North Wales and its design and engineering operations in Bristol Felton.
But the future of many of the 3,500 employees in the Spirit Belfast business remains uncertain. The union warns that up to 2,000 workers face ongoing uncertainty, especially those engaged in non-AIRBUS contracts.
Airbus will directly take over about 1,000 workers involved in the A220 wing, while it seeks third-party suppliers to take over the fuselage operations involving about 500 employees. Meanwhile, employees involved in maintenance, repair and non-Airbus manufacturing industries, including customers such as Rolls-Royce and Bombardier, are expected to remain under Boeing's ownership until a new buyer is found.
In Prestwick, Autbus controls 1,150 workers to support its A320 and A350 supply chains, although it hopes that such an arrangement will be temporary until another aerospace manufacturer can be found to acquire the plant.
As part of the deal, Airbus will receive $439 million in compensation, but has agreed to provide a $200 million credit line to support investments in newly acquired businesses.
“Airbus aims to ensure the stability of supply of its commercial aircraft programs by operating and financially, economically and financially, for the advancement of major Airbus work packages,” the company said in a statement. An official added that the focus is on ensuring activities that are critical to Airbus' current production.
When the Belfast plant acquired the struggling C-Series jet from Bombardier and rebranded it under the name of Airbus, it became the cornerstone of Airbus' A220 plan.
News of the deal was well received by investors, with Airbus shares rising 3.72 euros, or 2.7%, to 144.32 euros.
