Airbus to take over part of Spirit Aerosystems in Belfast

Airbus will take over part of Spirit Aerosystems’ operations in Belfast.

Spirit is Northern Ireland’s largest manufacturing employer, with approximately 3,500 employees.

Airbus takes control of the part of the company that makes the wings and fuselage of its A220 plane.

There is uncertainty over the non-Airbus parts of the Belfast business, with Spirit saying it will sell them separately.

This part of the business includes a range of work on Bombardier business jets.

Ulster Unionist MP Steve Aiken said Airbus only resuming work on the A220 “leaves big questions about the rest of the Spirit business” and called on the Economy Minister to provide ” urgent clarification” on the issue.

The structure of the deal is likely to cause concern among unions and Northern Ireland’s manufacturing sector.

The Unite union estimates that around 40% of staff at the Belfast operations are employed in non-Airbus jobs.

Earlier this year, Sir Michael Ryan, Spirit’s UK chairman, wrote to local stakeholders warning that “any break-up of the business would be extremely damaging 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 separation of physical buildings was possible, the company’s structure and ecosystem were “integrally linked” and allowed it “to achieve economies of scale, offering technological synergies, skills and flexibility”.

Spirit’s global operations are split between Boeing and Airbus, the world’s largest aircraft manufacturers.

Spirt was founded in 2005 when part of Boeing’s business was spun off into a separate company.

Monday’s deal was initiated by Boeing, which wants to bring Spirit in-house as part of its efforts to resolve manufacturing issues.

Boeing will pay $4.3bn (£3.3bn) for its share of the deal, while Spirit will pay Airbus $559m (£440.6m), reflecting the fact that the parts of the business Airbus is taking over are currently loss-making.

In addition to the Belfast operations, Airbus will take control of two Spirit factories in the United States, one in France and one in Morocco.

The Spirit business in Prestwick in Scotland is not part of the deal and will also be sold separately.

Airbus said the agreement “aims to ensure the stability of supply” for its commercial aircraft programs, both operationally and financially.

Spirit has been present in Northern Ireland since 2019, when it acquired Bombardier’s operations.

At the time, this agreement put an end to a long period of uncertainty for employees.

Earlier this year, Spirit announced it would invest in the Belfast factory and hire more staff as it ramps up production of the A220.

Airbus wants to increase the production rate of the A220 by 50% in 2024, with a further increase in 2025.