Teesside secures £50m deal for new aircraft facility creating 250 jobs

Teesside International Airport has secured a landmark 50-year agreement with a global aerospace innovator to establish a major new aircraft conversion campus.

Alfor Aviation will create 250 permanent high-skilled jobs at the new facility and will also relocate its global headquarters to Teesside, reinforcing the airport's position as one of the fastest growing centres for the global aviation industry.

The agreement, secured during discussions at the Farnborough International Airshow, will result in a £50million investment at Teesside Airport, with Alfor developing a purpose-built aircraft conversion facility comprising new hangars, engineering workshops and warehousing.

Once fully operational, it will be capable of converting up to 24 passenger aircraft into freighters each year. Construction is expected to begin shortly, with the facility starting operations by the end of 2027.

Phil Forster, Managing Director of Teesside International Airport, said: "This is a landmark investment for Teesside Airport and another major endorsement of the ambitious growth strategy we have been delivering over recent years.

"By bringing its unique technology to Teesside, Alfor will establish the airport as a centre of excellence for air freight innovation. Aircraft will be converted here and will also be flying from here, further strengthening Teesside's role in the future of international cargo aviation.

"Our business park is attracting multi-million-pound investments from leading global companies which recognise Teesside as a place where they can invest and grow. Alfor's decision to establish its global headquarters here is the latest example of that success.

"The combination of our land availability, Freeport status, excellent connectivity and skilled workforce is creating opportunities that are benefiting not only the airport itself, but the wider Tees Valley economy. We are proud to welcome Alfor Aviation and look forward to supporting its growth over the decades ahead."

The announcement represents one of the most significant investments in the UK's aircraft conversion sector and follows Alfor's unveiling of its Internal Loading System (ILS) technology at Farnborough International Airshow.

The technology enables aircraft to be converted for cargo operations without cutting a large cargo door into the fuselage, vastly reducing conversion costs and significantly accelerating turnaround times.

The development will establish Teesside as Alfor Aviation's global headquarters, bringing together executive management, engineering, aircraft conversion, logistics and support functions.

Alfor said a key factor behind the decision was the commercial advantages offered by Teesside Freeport, which offers significant tax and customs incentives, alongside the Airport's exceptional connectivity by air, road, rail and sea.

Following an extensive review of potential locations across Europe, Alfor concluded that Teesside offered the strongest combination of industrial capability, logistics infrastructure, workforce, investment environment and long-term growth potential.

The new conversion centre will significantly expand Alfor's production capability beyond its original plans, enabling the company to support growing global demand for passenger-to-freighter conversions driven by the rapid growth of e-commerce, express freight and integrated logistics networks.

The investment is also expected to strengthen the wider aerospace supply chain across the North East, creating opportunities for local manufacturers, engineering businesses, maintenance providers and specialist aviation suppliers.

Omer Mafa, Director of Alfor Aviation, said: "This is a transformational moment for Alfor Aviation and a major vote of confidence in both the United Kingdom and Teesside.

"We examined numerous locations across Europe for our long-term home, but nowhere matched what Teesside offers. The region is booming, its industrial heritage is being matched by an exciting modern vision for advanced manufacturing, and the opportunities for long-term growth are exceptional.

"The deciding factor was Teesside Freeport. As the UK's largest free trade zone, it provides exactly the kind of internationally competitive environment innovative aerospace businesses need. The combination of customs advantages, tax incentives, investment support and world-class connectivity creates an ecosystem unlike anywhere else in Europe.

"By relocating our headquarters here and investing for the next 50 years, we are making a clear statement about our confidence in the future of British aerospace manufacturing. From Teesside, we will build one of the world's leading aircraft conversion operations, creating highly skilled jobs, supporting the regional economy and helping position the UK at the forefront of the next generation of global air cargo."

Ben Houchen, Tees Valley Mayor, said: "This is another huge vote of confidence in Teesside, our airport and the fantastic opportunities we are creating across our region.

"The investment is a clear demonstration of how Teesside Airport is now an essential engine of economic growth in our region attracting global businesses, supporting local public services through business rates, and creating well-paid careers for local people.

"When I brought our airport back into public ownership, I made a commitment to use it as a catalyst for jobs, investment and long-term prosperity. This landmark agreement shows that strategy is delivering real benefits, with major international companies choosing Teesside and helping us build a stronger, more prosperous future for generations to come."