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Lord Mandelson announces Government's investment in Airbus

14 August 2009

South West England warmly welcomes today's announcement by Lord Mandelson of the Government's investment in the A350 XWB long-range aircraft.

The £340 million loan is the culmination of several years of national and regional backing for this important European initiative.

The project is one of the largest-ever industrial investments made in the region. It will strengthen the South West's position as one of the world's biggest aerospace clusters, and support many high value, high skill jobs, in the region and across the UK.

Jane Henderson, Chief Executive of the South West RDA (Regional Development Agency) said: "We are delighted this globally significant project is moving forward. It will keep the region at the forefront of technological innovation in this key sector.

"We are especially pleased that the new aircraft will use light-weight carbon composite materials, helping the sector achieve a significant reduction in carbon dioxide emissions. The Agency has played an important role in supporting research and development into composites that will be directly utilised in this project."

Composites are playing an increasing role in the aerospace sector due to their considerable strength and low weight which result in fuel savings and other significant environmental benefits. They are also increasingly important in other sectors such as renewable energy, marine, automotive and construction.

The South West RDA was a driving force behind the establishment of the "Coral Reef SW" project, a partnership with Airbus, the University of Bristol and other regional universities.

Based at Filton, Airbus's site outside Bristol, Coral Reef provides state-of-the-art facilities to support research in manufacturing and development of composites, and also includes a knowledge transfer component, enabling regional business to benefit from its findings.

In July, South West England was named Britain's first Low Carbon Economic Area, reflecting its potential to develop globally competitive green industries and to re-tool its traditional industries for a sustainable future.

Ends

For further information please contact Ben Murch (at Filton) 07528 358 587, Sue Amiel 07528 358 364 or Virginia Marsh at the RDA Press Office on 01392 229548.

Notes to Editors:

  • The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential.
  • South West England has a substantial concentration of aerospace activity, with the headquarters or major facilities for nine of the top 12 UK aerospace companies and an estimated 27% of the UK's industry located in the region.
  • As well as Airbus, other industry leaders that already have a significant presence in the region include: BAe Systems, GKN, Cobham, AgustaWestland, Honeywell, Rolls-Royce, Messier Dowty and GE Aviation.
  • GKN announced its intention to invest heavily in composite wing production in Bristol in January 2009; that and today's announcement are two of the largest industrial investments ever announced in the region.
  • The aerospace industry has been identified as a priority sector by the South West RDA since the agency was established a decade ago.
  • Projects funded or approved to date by the South West RDA include: £3.3m for Coral Reef (see above); £2.1m for Astraea, a programme to develop unmanned civil aircraft; £2.7m for the Integrated Wing programme; £2.5m for Rolls-Royce's Environmentally Friendly Engine programme; £8.0m for the Airbus-led Next Generation Composite Wing programme; and £0.6m for the Messier-Dowty led ELGEAR landing gear programme.
  • The South West RDA has also provided over £8m of support to the industry over the past five years through its support of the West of England Aerospace Forum, in the form of networking, lean manufacturing and supply-chain initiatives.

Contact Details

Name: Virginia Marsh
Tel: 01392 229548
Email: virginia.marsh@southwestrda.org.uk