Yahoo Finance Airbus to take over some Spirit operations in Belfast
Airbus is to take over part of the Spirit AeroSystems operation in Belfast.
Spirit is Northern Ireland’s most significant manufacturing employer, with about 3,500 staff.
Airbus is taking control of the part of the business which makes wings and fuselage for its A220 jet.
The future of Spirit's plant in Prestwick is also in doubt, after it agreed to be taken over by Boeing.
There is uncertainty for the non-Airbus parts of the Belfast business, with Spirit saying it will sell them separately.
That part of the business includes a range of work on Bombardier business jets.
The Ulster Unionist MLA, Steve Aiken, said Airbus taking over just the A220 work "leaves large questions about the rest of the Spirit business" and called on the economy minister to give "urgent clarity" on the issue.
Alarm for trade unions
The structure of the deal will likely cause alarm among trade unions and the Northern Ireland manufacturing sector.
The Unite trade union estimates that about 40% of the staff in the Belfast operation are employed in Airbus work; about 60% in non-Airbus work.
Regional co-ordinator at Unite, George Brash, said there was no certainty in the statement provided about jobs.
"Any carve up of the 60% of the workforce that's left will not be good for our members, or for Northern Ireland," he added.
"Our position is clear, the site needs to remain as one entity and intact."
Earlier this year Sir Michael Ryan, the chair of Spirit in the UK, wrote to local stakeholders warning that “any dismantling of the business would be extremely detrimental to the long-term future of the Belfast business, and by extension, the region’s aerospace industry”.
In the letter, obtained by the Financial Times, he said that while the separation of physical buildings was possible, the company’s structure and ecosystem was “integrally linked” and gave it “economies of scale, providing technological synergies, skills and flexibility”.
Invest Northern Ireland said in a statement that it recognises the "uncertainty" the news brings to the staff of Spirit AeroSystems and it acknowledges "the impact it may have on many individuals and families".
It said it is committed to supporting Spirit AeroSystems in seeking "the best outcome for Northern Ireland and the workforce here".
Initiated by Boeing
Spirit’s wider global business is being carved up between Boeing and Airbus, the world’s largest aircraft manufacturers.
Spirt was founded in 2005 when part of Boeing’s business was spun off as a separate company.
Monday’s deal was initiated by Boeing which wants to bring Spirit back in house as part of its efforts to tackle manufacturing problems.
Boeing is paying $4.3bn (£3.3bn) for its part of the deal whereas Spirit will pay Airbus $559m (£440.6m) reflecting the fact that the parts of the business Airbus is taking over are currently loss making.
Airbus will also take control of two Spirit factories in the US, one in France and one in Morocco.
Airbus said the deal "aims to ensure stability of supply" for its commercial aircraft programmes, both operationally and financially.
Prestwick plant
The sale places the future of one of Scotland’s most advanced manufacturing plants in doubt.
Spirit Aerosystems has recently employed up to 1,000 workers at the factory in Prestwick where it makes parts of aircraft wings for both Boeing and Airbus.
The company announcement indicates that Prestwick will continue to supply Boeing after becoming part of that company.
But it is not clear what will happen to the Airbus contract.
Spirit has been in Northern Ireland since 2019 when it bought Bombardier's operations.
At the time, that deal ended a long period of uncertainty for the workforce.
Earlier this year Spirit said it would invest in the Belfast factory and hire more staff as it ramps up production for the A220.
Airbus wants to step up the production rate of the A220 by 50% in 2024, with another increase in 2025.
