Boeing and UK Government announce long term partnership

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The aerospace OEM has reinforced its ongoing commitment to deliver on the prosperity agenda as set out in Chapter six of the 2015 Strategic Defence and Security Review (SDSR), through a further step-change in its onshore presence and industrial engagement with the UK.

The shared vision in the initiative is to deliver the best capabilities to the UK’s Armed Forces, alongside delivering additional, enhanced prosperity for the UK in partnership with the supply chain and public sector agencies. Boeing is committed to a long-term strategy for increasing investment in the UK in recognition of the capabilities and opportunities presented by the UK aerospace and defence industry, as part of Boeing’s global strategy for becoming an enduring industrial champion for the 21st century. This will include expanding opportunities for the supply chain.

“Boeing is committed to the UK Government’s prosperity agenda and we share the goals of enhanced economic growth that the Prime Minister has set out to us,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.

Boeing has doubled its UK workforce and more than doubled its annual spending with the UK supply chain over the last five years, to more than 2,000 people and £1.8bn respectively in 2015. This growth plan is expected to result in a further 2,000 new Boeing jobs in the UK, alongside increased capital investment and additional bidding opportunities and competitiveness initiatives for UK suppliers.

The shared ambition of this initiative is to enhance competitiveness to create the opportunity for UK companies to double their supply work with Boeing as production rates are achieved on new and current aircraft programmes.

“I want the UK to continue to be at the forefront of the global aerospace industry, both civil and defence, said Prime Minister David Cameron. “That’s why 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.”

Progress will be reviewed at a bilateral Boeing Ministerial meeting each year at the Farnborough and Paris air shows, starting at Le Bourget in 2017. A senior UK Government minister and a member of Boeing’s Executive Council will lead these discussions.

The partnering initiative covers the following:

• Boeing will increase overall bid opportunities offered to UK suppliers and work with the UK Government to enhance UK suppliers’ competitiveness. The aim of the initiative is to create the opportunity for UK companies to double their supply work with Boeing and to win higher proportions of content on future Boeing aircraft.


• Boeing will sign the Aerospace Growth Partnership Supply Chain Competitiveness charter.


• Boeing will make the UK its European base for training, maintenance, repair and overhaul across its defence fixed-wing and rotary platforms.


• Additionally, Boeing and the Government intend to work together to build a new £100m P-8A operational support and training base at RAF Lossiemouth in Scotland, creating more than 100 new jobs.


• Boeing will continue to grow its commercial aviation services business in the UK.


• Boeing will make the UK a base for defence exports to Europe and the Middle East, increasing UK employment, investment and tax revenue.


• Boeing will increase its contribution to the security, policing, cyber, information technology and space sectors in the UK, including by joining the Security and Resilience Growth Partnership and establishing a presence in the UK space sector during 2016.

The aerospace giant says it will launch new investment in UK research and development, creating technology and intellectual property in the UK to be commercially exploited by Boeing in the UK and its supply chain, including SMEs.

Specific new initiatives include working with QinetiQ and other partners to demonstrate a world leading enhancement to the QinetiQ 5 metre wind tunnel and new joint projects with Rolls-Royce on propulsion systems.

Additional announcements on further Boeing UK growth and partnerships will be made during the Farnborough International Airshow and beyond. Growth in Boeing jobs in the UK is not expected to result in fewer Boeing jobs in the United States or other locations.

Boeing employs more than 2,000 people across the UK at numerous sites, from Glasgow to Gosport, and the company says it is experiencing solid organic growth. In 2013 Boeing celebrated 75 years of partnership with the United Kingdom, the Armed Forces, British manufacturing and the air transport industry. It says the UK remains a critically important market, supplier base and a source of some of the world’s most inventive technology partners. Boeing’s expenditure with the UK aerospace industry in 2015 was £1.8 billion ($2.65 billion) and the company supports 12,700 jobs in the tier one UK supply chain.

www.boeing.co.uk