Airbus UK investment kills another Remainer threat that never came true

Without Brexit Britain, Airbus would have no wings

Montage © Facts4EU.Org 2022

Airbus’ expanding order book requires more wings - and more work at its Broughton site in North Wales

On Friday, French-controlled Airbus made a fresh commitment to being part of Brexit Britain’s economic fabric.

Following confirmation of orders for new Airbus aircraft from Qantas and other airlines, the multinational company has announced a £100m investment at its Broughton manufacturing plant in Flintshire, North Wales, creating 450-550 jobs.

Credit: Airbus Press Office 2022

“We are steadfast in our commitment to the UK,”
- Airbus UK’s Chairman, John Harrison

Remainer threats were – rightly it turns out – ignored by Leave voters

Along with the Nissan car plant in Sunderland the possibility that Airbus would abandon manufacturing in the UK was a regular threat raised by supporters of the UK remaining in the EU, during the 2016 referendum campaign. In part the fears were founded on some industry executives suggesting that foreign-owned companies would seek to move.

In spite of this threat the voters of Sunderland and Broughton both chose to vote Leave. Regaining sovereignty was more important than self-interest in the biggest democratic vote in our history.

Brexit Facts4EU.Org Summary

How did the Airbus and Nissan constituencies vote?

In 2016 the Alyn & Deeside constituency where the Broughton factory of Airbus is situated voted 58.1% to Leave with 41.9% voting to Remain
The Washington and Sunderland West constituency where the Nissan car plant is located voted 61.9% to Leave with only 38.1% voting to Remain

The sky’s the limit “despite Brexit”

Airbus employs more than 6,000 workers at its Broughton facility and over 3,000 at Filton, Bristol
Investment by Airbus in its Broughton plant over the last fifteen years has totalled more than £2bn
The factory in Broughton makes wings, including those of the Airbus A380 – the world's largest passenger plane
The wings are flown over to France where the aircraft are assembled
The factory at Filton site makes wings for the Airbus A400M, a military transport plane
The Airbus A350-1000 just ordered by Qantas is powered by the latest generation Trent XWB engines from Rolls-Royce – safeguarding the jobs of British workers
An Airbus spokesperson confirmed that it plans to make 75 A320 planes a month in 2025, an increase of around 50%

“Operating from more than 25 sites across the UK, Airbus is the largest civil aerospace company in the country, the biggest civil aerospace exporter, Britain’s largest space company, the biggest supplier of large aircraft to the Royal Air Force and is responsible for around 50% of the UK’s civil helicopter fleet.”
- Details from an Oxford Economics survey

Previous warnings about Airbus leaving the UK

In May 2015, Paul Khan, Airbus UK's chief executive, said Airbus would reconsider future investment in the UK that if the country voted to leave the EU in the 2016 referendum
In evidence to a House of Commons committee in January 2017 Airbus warned any deal with the EU deal must allow the company to move its products and workers around Europe, including at short notice and without restrictions
In June 2018 Airbus warned that if the UK left the EU without a transition deal: “This scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country.”

The renewed commitment of Airbus Industrie to Brexit Britain

“Airbus remains a vital part of the UK’s economic, societal and environmental landscape, even when accounting for the impact of COVID-19 on the wider aviation sector.
“We are steadfast in our commitment to the UK, and will continue to invest in our workforce, in the UK supply chain, research and development, and in the technologies that will play a vital role in limiting man-made carbon emissions, providing sustainable aviation that will benefit the entire planet.
“As our business looks towards recovery and growth following the pandemic, we continue to view Airbus’ strong and enduring relationship with the United Kingdom as a vital element of Airbus’ ongoing success and we are committed to continuing to deepen our ties over the years and decades to come.”
- John Harrison, Chairman, Airbus UK

UK Government welcomes decision by Airbus

Speaking about a recent study by Oxford Economics into the value of Airbus to the UK economy, Lee Rowley MP, Minister for Industry, said:

“The UK has a world leading aerospace sector, with Airbus playing a central role in this success. The ground-breaking tech that Airbus and its partners are developing will help secure the future of flight in the next generation aircraft of tomorrow.”
- Lee Rowley MP, Minister for Industry

Observations

Remainer sabre rattling never fooled the British public

Every month in the run up to the 2016 EU Referendum there would be a flurry of reports about one international business or another pulling out of the UK if we voted to leave, followed by denials.

Then, after we voted to leave, we went through the process again as the negotiations began on what shape the UK-EU relationship would be. Again, veiled threats would be followed by denials.

Then Covid arrived and the airline industry took a real hammering, resulting in Airbus having to introduce redundancies for commercial self-preservation. Now that the pandemic is ending, travel is opening up again and airlines are placing orders for aircraft. Airbus is set to recruit again and is investing in its Broughton facility in Flintshire, North Wales.

If there was a time for Airbus to leave the UK it was when Covid offered the chance of restructuring, but Airbus has not done that. Instead it has renewed its commitment to the UK post-Brexit. The point is there is a great deal of human capital in the British production facilities as well as financial capital. That range and depth of skill sets cannot just be conjured up on a political whim.

There will be new investments and closures in Brexit Britain – that’s the nature of business – but these will be determined by economic and logistical factors, rarely will it be anything political. That’s not to say company executives will desist from trying to encourage governments to give them advantageous support in loans or taxpayer support. That too is business, not politics – and that’s why the British public was never fooled by the threats.

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[ Sources: Airbus Industrie | Oxford Economics | Electoral Commission ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Mon 09 May 2022

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Reader Comments 7

1. Fred Dawson , Monday, May 09, 2022, 07:17:

Congratulations to all the staff at Airbus UKand that if Rolls Royce too...an outstanding effort by all the workforce.

2. Kenneth Pearce , Monday, May 09, 2022, 07:21:

Just more scaremongering to try to force people to vote to remain

3. Jon, Wales , Monday, May 09, 2022, 14:56:

This is excellent news for North Wales, and for the United Kingdom generally. Companies choosing to invest in the UK will be rewarded by a skilled workforce.
Unfortunately, rejoiners will never accept good news like this, as they remain intent on dragging the UK down into a corrupt EU pit.
I doubt the BBC [UK's national broadcaster] would actually report such good news.
A great article once again to silence rejoiners and their unfounded claims.
I believe in my country and all we have to offer, and trade will continue as we Brexiteers always said it would. Business always adapts to change.
As an aside, all we now need is for Prime Minister Johnson to scrap the N.I. protocol. This will be the test for Boris to set right a dreadful wrong. We cannot allow a foreign power to destroy the United Kingdom single market, and we should certainly NEVER allow the EU commission to dictate trade between NI-GB.
I maintain the view that if the corrupt EU remain intent on a border, they can place it in Ireland (an EU member). The UK always said it would NEVER return to a hard border, but by the EU's [and Boris'] own actions, they have done what they said they would not do.
It is my view that if PM Johnson fails to scrap the unworkable protocol in its entirety, his backbenchers should oust him from power.
Like many, I've had enough of hearing empty promises from our politicians.

4. jon livesey , Monday, May 09, 2022, 15:00:

And let's not forget that Airbus is what European cooperation should really be - an agreement between companies to share competencies, not some pan-EU scheme imposed by bureaucrats.

5. Adam , Monday, May 09, 2022, 15:43:

I don't listen to loser Remoaners anymore they need to get over losing the referendum 4 years ago (2016) as a leaver I never wanted Ill feelings towards Europeans like most Brexiteers I am quite happy to trade and cooperate with our neighbors across the North sea but we no longer want Foreigners interfering in our Country including the EU USA WHO UN etc

6. LuxuryBalloon , Monday, May 09, 2022, 17:49:

More evidence that Boris’s Brexit deal is working!

7. jon livesey , Monday, May 09, 2022, 20:09:

On a slightly more serious note, there is an issue here which affects all Remainer arguments. Businessmen do not make decisions based on sentiment, and when engineering is involved, they cannot. When you are making decisions about engineering investment, you have to look at the supply of trained talent, the existing investment, and the available infrastructure. During the Brexit debate the Remainers talked as if Airbus could move its wing operation to Europe any time it wanted. Airbus cannot do that. To move its wing operation to Europe would cost Airbus billions of euros and at least a decade of disrupted production while it trained new engineers to do the job. No company is going to take that kind of hit for reasons of sentiment or ideology, not least because their investors would probably sue them if they did.
And what is true for engineering is also true for basic Science research, Biotech, advanced manufacturing generally and Finance. They are all fields that depend critically on the particular education and skill of limited pools of people. It is not a situation where you can write a cheque and move an operation.

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