Boeing has secured a ten year, £9bn deal, with the UK that will see the UK government buy 9 marine patrol planes (P-8AS).
The move means that to allocate the space needed to manufacture the planes, Boeing will build a new £100m facility in RAF Lossiemouth in Moray doubling the number of staff in the UK currently employed under Boeing.
Uncertainty over the economy has shaken all sectors within the UK since the EU referendum and the new deal will restore some faith in the government’s ability to maintain defence spending at 2% GDP.
The EU Referendum introduced fears that global companies would relocate from the UK should there be a Brexit vote. Boeing quelled these fears as it told investors that it would not move any of its business away from the UK and that its decision to make the UK its European headquarters was ‘neutral’.
The deal is set to create up to 2,000 new jobs in the UK that will expand on maintenance support for commercial and military operations. The deal was announced today at the start of the 2016 Farnborough Air show by Prime Minister David Cameron.
Mr Cameron said:
“I’m delighted that we can announce today a long-term strategic initiative with Boeing that will create thousands of jobs, secure investment in R&D and create opportunities for the supply chain, as well as delivering on our defence commitments.
“Boeing is one of the world’s most respected aerospace companies. This long-term commitment shows the UK is open for business, and attractive for investment.”
The deal will also see the delivery of 50 Apache AH-64E attack helicopters that will serve in the British Army alongside a separate deal reached by the UK government for a further £365m worth of aerospace research and development provided for by both parties.
The air show also provided the stage for the US company to announce its annual outlook for demands on civil aircraft’s. The company expects that demands up until 2035 will reach £4.6 trillion as the total number of planes needed by then will reach 39,600.
Randy Tinseth, Vice-president of marketing at Boeing said:
“Despite recent events that have impacted the financial markets, the aviation sector will continue to see long-term growth, with the commercial fleet doubling in size,”
11/07/2016