Airbus to open composites factory in Britain

28th February 2007, Comments 0 comments

LONDON, Feb 28, 2007 (AFP) - European plane maker Airbus will announce plans to open a composites factory in Britain as part of a restructuring plan due to be unveiled Wednesday, the Financial Times reported.

LONDON, Feb 28, 2007 (AFP) - European plane maker Airbus will announce plans to open a composites factory in Britain as part of a restructuring plan due to be unveiled Wednesday, the Financial Times reported.

Citing an unidentified British trade and industry department official, the business daily also said that about 1,500 Airbus-related jobs would be cut in Britain as part of the restructuring plan.

"We have fought our corner hard and secured the best possible deal for the UK," the official was quoted as saying by the FT.

"Less than eight weeks ago there was a real question mark over the long-term sustainability of Airbus in the UK ... We have secured within the UK the manufacture of crucial composite components.

"We will be as advanced as anyone in this important future technology."

According to the FT, Airbus will create the factory near the southwestern English city of Bristol in a joint venture with a supplier, and the paper mentioned the engineering group GKN as one possibility.

Airbus's 56,000-strong workforce have been in limbo since October, when the group first announced the outlines of a restructuring plan called "Power8".

The cost-cutting scheme aims to save the company 5.0 billion euros (6.6 billion dollars) by 2010 and 2.0 billion euros per year thereafter.

It is expected to include as many as 10,000 job cuts, the outsourcing of manufacturing, divestment of factories, as well as a reorganisation of assembly work.

Implementation of the plans has been held up since October because of tensions between France and Germany over where cuts will fall.

Airbus is to finally unveil the details on Wednesday after winning approval from parent company EADS to press ahead with the cost-cutting scheme.

EADS is controlled by French shareholders media group Lagardere and the French state, and German shareholder car maker DaimlerChrysler.

Copyright AFP

Subject: French news

0 Comments To This Article