Airbus Handed GBP340m Government Loan

Fri, 14 Aug 2009

Plane manufacturer Airbus is to receive up to £340m in loans from the UK government to fund new projects and save thousands of jobs .

The investment, announced by Business Secretary Lord Mandelson, will go towards the design and development of the A350 long haul jet – the first Airbus to use more than 50 per cent lightweight composite parts.

The Department for Business, Innovation and Skills said around 5,000 jobs are expected to be secured by the loan .

Of these, 1,200 are direct Airbus positions at its plants in Filton, Bristol, and Broughton, north Wales, while the remaining 3,800 are across the supply chain.

Lord 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."

"It is also 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."

Bernie Hamilton, Unite national officer for aerospace and shipbuilding, commented: "This investment is a vote of confidence for UK manufacturing and a ringing endorsement of the government's aerospace strategy.

"It safeguards thousands of jobs across the UK, but in particular, it is good news for jobs in Wales and the South West."

The government loan is known as "repayable launch investment" and will be repaid when the mid-range A350 aircraft begins to roll off the production line in early 2013.
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