GKN buys Airbus plant for £136m

The Filton plant supplies metallic wing components for the Airbus 380

Part of the Airbus factory in south Gloucestershire is being sold to engineering company GKN for £136m.

The firm is to buy the manufacturing operation at the Filton site, which makes wing components for Airbus.

The Unite union said the deal was "fantastic news" for British manufacturing and would help secure the UK's aerospace industry for decades.

Airbus has been negotiating to sell Filton to GKN for months and has been close to a deal for several weeks.

There was speculation that a deal had been delayed by negotiations over price and a commitment by Airbus to provide the factory with future work on its pending A350 aircraft.

'World leader'

The factory was put up for sale by Airbus's parent, EADS, as part of its Power8 restructuring programme.

Business Secretary John Hutton announced that the government had agreed, in principle, to support GKN with £60m repayable launch investment.

An additional £50m will be made available over the next five years for research and technology to support a number of high quality Airbus projects.

He said: "This investment in Filton by government and industry demonstrates our shared commitment to supporting high-tech, high-skilled aerospace companies in the UK to ensure we remain a world leader in this sector.

"Building on the launch of the government's manufacturing strategy this week, this is a clear demonstration of how we will continue to do all we can to work with our key manufacturers to keep them at the forefront of competitive global markets."

GKN chief executive Sir Kevin Smith said: "The acquisition of the Filton wing components and assemblies manufacturing operation is a further exciting step in the development of GKN's aerospace business.

Aerospace in the UK is a manufacturing success story and this deal will ensure that a site that plays a significant part in that success continues to do so Ian Godden, Society of British Aerospace Companies

"The strategic logic is compelling. It brings a long-term partnership with Airbus and a strong order backlog which supports solid growth."

Unite national officer Bernie Hamilton said: "GKN and the government are making substantial investments into cutting-edge composite technology, which will ensure that the UK retains its leading world-class position for designing, manufacturing and assembling wings for large aircraft.

"This announcement secures the UK's work-share for the manufacturing of wings for the new A350XWB and positions us at the forefront of the next generation of single aisle planes, the workhorses of the airline industry."

The Filton wing component and assemblies operation being acquired by GKN employs about 1,500 workers and has been developed by Airbus as a centre of excellence for wing structures.

Centre of excellence

It is a manufacturing and assembly specialist for metallic wing components, supplying the full range of Airbus aircraft including the A320 range, A330/340, A380 and A400M.

GKN said it intended to invest £125m over five years to develop the Filton business as a global centre of excellence in composite wing structures.

Ian Godden, Chief Executive of the Society of British Aerospace Companies, said: "We welcome the finalisation of this deal between two of the UK's leading aerospace companies.

"It is an encouraging example of the continuing progress of Airbus' Power8 programme as well as the commitment of GKN's aerospace business to the UK.

"Aerospace in the UK is a manufacturing success story and this deal will ensure that a site that plays a significant part in that success continues to do so."