AEROSPACE GIANTS RIVALRY TO COST LOCAL JOBS?

Uncertainty as MP worried former Shorts factories could be sold off piecemeal

By Iain Gray

FEARS have been raised that an international aircraft rivalry could cost local factory jobs.

Aeroplane giant Boeing is in talks to take over the American manufacturing firm that owns former Shorts plants in Northern Ireland – including facilities in Newtownards and east Belfast.

The local factories primarily make parts for rival corporation Airbus, however, and it’s widely believed Boeing only wants the specific Spirit AeroSystems plants around the world that manufacture its own equipment.

Potentially, some segments of local factories could shift over to producing Boeing parts in the event of a takeover, and there have been preliminary talks about Airbus stepping in to buy plants that deal with its fuselage and wings.

But Airbus says it’s keeping a variety of options open about its supply chain, leading to uncertainty for the workforce here.

And there’s a possibility Spirit could be sold off piecemeal, even breaking up sections of the business within Northern Ireland for different buyers.

Some are concerned that local factories will struggle if that happens, as they’d no longer be able to access economies of scale and shared resources that keep the Northern Irish operation competitive.

Among those worried is Strangford MP Jim Shannon. Speaking after a meeting with a senior Spirit executive, he fears that ‘breaking up the ability and capability’ of the former Shorts factories ‘would have a detrimental effect to their long-term future’.

Pointing out that there’s an entire web of retailers and suppliers connected to the business across the province, he argued that all of the factories need to be sold off as one single business to a sole buyer.

“The renown this operation is held in should allow that to take place, as long as the owners do not go for the easy option of a quick sale,” he said.

“The business in Northern Ireland is the jewel in the crown of British aerospace; it must be protected.”

Mr Shannon pledged to work with east Belfast MP Gavin Robinson to protect local jobs in the short-term and secure the long-term future of the former Shorts factories.

In a shareholder briefing last week, Spirit CEO Patrick Shanahan said he was confident the firm’s partnership with Airbus would continue, pointing to increased production expected for two of the corporation’s planes – including the A220, the wings for which are manufactured in Northern Ireland.

Spirit has been stuck in a protracted price dispute with Airbus, which, along with quality issues and delays to its Boeing operations, contributed to what Mr Shanahan described as ‘significant losses’ for the company.

Reinforcing that the firm is a ‘financially strong business’, he confirmed that talks with both Boeing and Airbus continue.

Kansas-based Spirit used to be an arm of Boeing, but was divested by the aircraft giant almost 20 years ago.

Struggling at first, after winning an Airbus manufacturing contract the firm went from strength to strength, eventually acquiring several other American plants as well as factories in Scotland, France, Morocco and Malaysia.

In 2020, it took over former Shorts facilities in Newtownards, Belfast, Dunmurry and Newtownabbey, which at the time were owned by Bombardier.

It brought to an end many difficult years and several rounds of job losses, and at the time was hailed as a fresh start for the local industry.