Prime Minister and Business and Trade
Secretary Kemi Badenoch have welcomed a momentous deal for Airbus
and Rolls-Royce to provide new aircraft for Air India, which is
worth billions of pounds to the UK. The agreement announced by
the companies this morning will support and create new highly
skilled jobs in Wales and Derbyshire, helping to boost exports,
grow the economy and level up the UK.
A significant portion of the
manufacturing process for the new aircraft is expected to take
place in the UK. The wings will be designed in Filton and
assembled in Broughton – which is expected to bring an additional
450 manufacturing jobs and more than £100m of investment to
Wales. The large A350 aircraft are exclusively powered by
Rolls-Royce XWB engines, which are assembled and tested in
Derby.
In 2021, the UK’s world-class
aerospace sector added £10.6bn in value to the UK economy,
exported around 70% of its domestic output and directly employed
111,000 high-skilled people, 89% of whom are outside London and
the Southeast. It is also a leading sector for high value
apprenticeships, with 5,500 currently employed in
sector.
India is a major economic power,
projected to be the world’s third largest economy with a quarter
of a billion middle class consumers by 2050. We are currently
negotiating a free trade agreement that would boost our £29.6
billion trading relationship.
Prime Minister
said:
“This landmark deal between Air
India, Airbus and Rolls-Royce demonstrates that the sky’s the
limit for the UK’s thriving aerospace sector.
“It will create
better-paid jobs and new opportunities in manufacturing hubs
from Derby to Wales, so we can grow the economy
and support our agenda to level up – helping to deliver
on my five priorities for the country.
“The UK is already a top
investment destination, and by building trade ties with growing
economic powers like India we will ensure UK businesses remain at
the forefront of global growth and
innovation.”
Business and Trade
Secretary said:
“This is a significant win for
the UK's world-leading aerospace sector and one which will help
to secure thousands of highly skilled jobs across the country and
drive economic growth. It’s a shot in the arm for UK exports as
we aim to sell £1 trillion of goods and services a year to the
world by the end of the decade.
“We’re currently negotiating a
trade deal with India which could boost trade by up to £28
billion a year by 2035. Export wins like this are another big
step to our nations forming a closer trading
relationship."
Notes to
editors:
- This deal will support wing assembly and engine manufacturing
jobs, helping to ramp up Airbus’ production of the single aisle
A320 aircraft and which will bring an additional 450
manufacturing jobs and over £100m of investment to Broughton, as
they announced last year.
