Boeing has announced it is to open its first manufacturing facility in Europe with the creation of a US$25 million facility in Sheffield, England, which will be responsible for supplying parts for Boeing 737 and 777 aircraft, specializing in actuation systems which extend and retract the aircraft wing flaps during different flight phases.
Not only is this a boost for the U.K. post Brexit, but also forms part of Boeing’s plans to increase in-house manufacturing with an aim to boost production efficiency and reduce supply-chain costs. Initially, the 25,000 square-foot facility will employ 30 staff. While Boeing already has over 2,000 UK-based employees, these are all involved in non-manufacturing roles, including sales and services.
Part of the reason Boeing has shown confidence in the U.K. despite Brexit is that while many British manufacturers face the threat of increased cross-border duties in the event of the U.K. leaving the EU customs union, aerospace companies are exempt under World Trade Organization rules.
According to Boeing Europe President Michael Arthur’s statement in a press release, “Our decision to start manufacturing high-value components in the U.K. is a step-change in our engagement and a further example of Boeing’s commitment to grow here.”
The Sheffield operation will work closely with Boeing’s Portland, Oregon, facility, which specializes in complex machining, gear systems and flight controls. Additional components will be manufactured in Sheffield and the actuator systems will be assembled before they’re dispatched to the company’s Seattle-area production units.
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