Share

SA can benefit from Airbus move

Cape Town - European aircraft manufacturer Airbus is going ahead with plans to establish an assembly line for its A320 aircraft in the USA.

The investment in the Mobile, Alabama facility is worth an estimated $600m and is seen as a challenge to Airbus' biggest competitor, Boeing. The US is seen as home base for Boeing.

Airbus calls the move a "major strategic" step, and says the US is the largest single-aisle aircraft market in the world.

The move by Airbus may have a positive knock-on effect for several South African companies.

South Africa's Aerosud, Cobham and Advanced Aerospace Composites currently supply Airbus and its customers with parts and components for the A320 family of jetliners.

The planned manufacturing facility will be responsible for assembling and delivering A320 family aircraft. Airbus' first US-based production facility will be located at the Brookley Aeroplex in Mobile.

Airbus stressed that the assembly line, which will create jobs and strengthen the aerospace industry, is part of its strategy to enhance global competitiveness by meeting the growing needs of Airbus customers in the United States and elsewhere.

Aircraft assembly is planned to start in 2015, with first deliveries from the Mobile facility beginning in 2016. Airbus anticipates the facility will produce between 40 and 50 aircraft per year by 2018.

“The time is right for Airbus to expand in America,” Airbus president & CEO Fabrice Brégier said in a statement on Monday.

“The US is the largest single-aisle aircraft market in the world – with a projected need for 4 600 aircraft over the next 20 years - and this assembly line brings us closer to our customers.

"Mobile is now becoming part of Airbus’ global production network, joining our successful and growing assembly lines in Hamburg and Toulouse."
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.18
-0.4%
Rand - Pound
23.86
-0.3%
Rand - Euro
20.50
-0.2%
Rand - Aus dollar
12.48
-0.6%
Rand - Yen
0.12
-0.3%
Platinum
920.70
+0.1%
Palladium
1,024.50
-0.2%
Gold
2,316.22
-0.3%
Silver
27.14
-0.6%
Brent Crude
88.42
+1.6%
Top 40
68,524
+0.7%
All Share
74,495
+0.7%
Resource 10
59,680
+0.1%
Industrial 25
104,252
+1.4%
Financial 15
15,913
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders