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Lord Sainsbury of Turville

A380 Opening Ceremony

Lord Sainsbury of Turville

Filton


Thursday, September 19, 2002


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Good morning, ladies and gentlemen. I am delighted to be here today to open the Avon Building.

The past twelve months have witnessed what is, perhaps, the most chaotic of times for the civil airliner industry, as well as air travel. Post-September 11, there have been job losses worldwide, and Airbus has naturally suffered. But because of the business skills of the management of Airbus UK, and close dialogue with, and support of, the trade unions, those losses (of around 300 jobs) have been kept to a minimum. This compares with the US aircraft manufacturer Boeing cutting around 30,000 jobs.

Airbus UK is displaying foresight and sound business sense in investing for the future with this new facility, with which it can push forward its ambitious new programme of developing and producing the A380. I am sure this aircraft will contribute to the success of the company, and inaugurate a new era in air travel.

It goes without saying that the Government is committed to the success of Airbus aircraft and Airbus UK. In the past, the Government has provided significant launch investment for the very successful A320, A330 and A340 programmes. In addition, it is providing £530 million on the A380 project. A further example is that since Airbus UK was formed on 1st April 2000, the DTI's Aeronautics Research Programme (formerly CARAD) has provided significant grant support for research projectsgrant spend to the company has totalled about £1.5million a year (in 2000/01, £1.5m; in 2001/02, £1.3m). This is forecast to increase during the immediate period with committed grants totalling £8.5million in place. These grants represent nearly 50% of the total Airbus element of costs in ten projects, including substantial projects in structural composites, aerodynamic simulation toolset, integrated technologies for future wing designs and advanced turbulent flow technology. Airbus also make significant use of the European Framework Research funding in aeronautics. The DTI provides support for the programme and budget as well as facilitation to Airbus and partner companies in exploiting the opportunities

More recently at Farnborough, my colleague Alan Johnson announced that the Government is providing £2.6 million of funding for the CASCADE project, which will enhance the UK's future capability in a key area of design and manufacturing technology, and underpin the country's position as a leader in civil airliner wing design.

In the global knowledge economy, the UK cannot compete on the basis of low labour costs and cheap materials. We can only compete on the basis of our knowledge, skills and creativity. In particular, we have to compete on the basis of innovation, so that we are always a moving target to the newly industrialising countries.

There can be no better example of this economic fact than the aerospace industry where we have a long record of innovation and a strong competitive position in the global market.

Together with the USA and France, the United Kingdom is one of only three countries in the world that design, market and manufacture civil aircraft and aeroengines. Indeed, the UK aerospace industry is one of the great industrial success stories of this country, and Airbus UK is a leading light in the industry. The industry shares the Government's aims in the drive towards a more knowledge-intensive, high productivity economy

The A380 programme is the most ambitious programme undertaken by this country's aerospace industry since Concorde, with which Filton enjoys a long and distinguished association. The A380 is a considerable project that encompasses not only Airbus UK, but also many British and overseas companies, who will be responsible for constructing and supplying the numerous components that together will comprise this airliner.

In the A380 we have, for the first time, a serious competitor to the Boeing 747, thereby enabling Airbus to compete to become a product leader on a level playing-field with Boeing. These facts alone underline the importance of the A380 programme to other UK aerospace firms. Airbus UK is also committing major investment to expand its production facilities in support of the A380 in Broughton.

However, before the manufacturing stage can be reached, it is necessary to focus on realising a sound design for any project. For that, it is essential to have the right people who have an array of the right design skills at their disposal. Therefore, this new facility here at Filton has a central role to play in bringing the A380 programme to fruition. I am also extremely pleased that as part of this process Airbus UK is committed to training up young people as apprentices. In turn, these people become the designers and engineers who form the backbone of the company and contribute to its success. I sincerely hope that this may inspire other companies to consider following Airbus UK's lead.

Already, Filton has been selected to produce the main landing gear for the A380, and this will result in the added bonus of other companies already in the South West being able to manufacture the various components that together will make up the whole. Clearly, the prospect for more jobs to be created within this region – thereby contributing to its economic growth – has never been better, and has come at the right time. This, therefore, represents a boost to the local economy, and will in turn bring real optimism and hope to many here, and point the way to a bright future.

The aerospace industry is an industry of which we in the UK can justifiably be proud, and I am confident that this new facility, and the skills of the people who work here, will enhance the standing of Airbus UK, thereby enabling it to compete more effectively within an important European company. With that in mind, I now formally declare the Avon Building open.

The siting of this new facility here at Filton is of great importance, not only because Filton has long enjoyed a tradition of aircraft design and production, but also because of the benefits it will bring to the west and the South West of England. Let me spell these out.

  • The aerospace industry is of vital importance to the economy of the South West, employing around 40,000 people in total and generating a turnover of £4billion.
  • The sector generates a high level of export value for the UK, and contributes around 5% of the South West's GDP.
  • Overall, Airbus employs around 4,800 people here in Bristol, and uses around 400 first-tier suppliers from around the UK, helping to provide many additional skilled jobs in the engineering supply chain in the South West.
  • Already, Filton has been selected to integrate the main landing gear for the A380, and this will result in the added bonus of other companies already in the South West being able to manufacture the various components that together will make up the whole. Clearly, the prospect for more jobs to be created within this region – thereby contributing to its economic growth – has never been better, and has come at the right time. This, therefore, represents a boost to the local economy, and will in turn bring real optimism and hope to many here, and point the way to a bright future.
  • Airbus has also given tremendous support to regional partnership, working through the West of England Aerospace Forum (WEAF) and seconding staff to work for it and co-ordinate activity for the sector. The major Primes in the South West such as Rolls-Royce, Smiths Industries, Westlands, Messier-Dowty, BAE Systems and Cobham, and a wide range of smaller businesses in the supply chain, are fully engaged in the competitive and skills programmes being run through the Forum.
  • The Forum and these development programmes have received significant funding support from the South West of England Regional Development Agency (SWRDA), and Sir Michael Lickiss will tell you more about over lunch.

The aerospace industry is an industry of which we in the UK can justifiably be proud, and I am confident that this new facility, and the skills of the people who work here, will help to enhance the outstanding record of innovation of Airbus UK, and thereby enable it to compete, more effectively within a strategically important European company.

I, therefore, have great pleasure in formally declaring the Avon Building open.


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