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The fate of Spirit’s Belfast operations is unknown after
Boeing said in March it was in talks to buy the troubled US aerospace supplier
it spun off nearly 20 years ago.
Sir Michael Ryan, who chairs Spirit’s UK subsidiary, wrote
to local stakeholders that “any dismantling of the business would be extremely
detrimental to the long-term future of the Belfast business, and by extension,
the region’s aerospace industry”.
“We firmly believe maintaining the Northern Ireland
operations as a single entity is the best option in any proposed acquisition,”
Ryan added in the letter, which was sent at the end of April, a copy of which
has been seen by the Financial Times.
Boeing is under pressure to shift more of its production
in-house after the fuselage section of one of its aircraft blew out in mid-air.
Spirit supplies Boeing with the fuselages for its 737 Max aircraft and both
manufacturers are undergoing an audit by America’s aviation safety
regulator.
The talks have become complicated, however, as Spirit seeks
to offload the work it does for Boeing’s European rival Airbus, notably at
Belfast but also at a site in Scotland and in the US.
Guillaume Faury, Airbus chief executive, said last month the
company was in early-stage talks with Spirit about the work it does for the
plane maker.
“We would not want our important work packages to be
procured from our main and almost sole competitor,” said Faury.
Spirit’s Belfast operations — which span six sites — build
the wings and mid-fuselage sections for the Airbus A220 aircraft programme. But
they also manufacture fuselage sections and other critical components for a
range of business jets built by Canada’s Bombardier.
The operations, which employ more than 3,000 people, are
integral to the region’s thriving aerospace industry. The Belfast facilities,
which are part of the historic Short Brothers factory, also do maintenance and
repair work for other aviation customers.
Talks between Spirit and Airbus are progressing in the right
direction, according to people familiar with the situation. Analysts have said
the European group will be focused on ringfencing the work for the A220 at
Belfast and securing the associated jobs.
However, in his letter, Ryan stated that while the
separation of physical buildings was possible, the company’s structure and
ecosystem is “integrally linked” and gave it “economies of scale, providing
technological synergies, skills and flexibility”.
He warned that Northern Ireland’s ability to compete in a
global environment would be put at risk if the operations were dismantled for
the “optimisation of particular customers or other buyers”. By comparison,
taking on the entire operation would be a “much less risky and complex
exercise, particularly for an experienced and proficient strategic
owner”.
Union representatives echoed his concerns. Alan Perry, a
senior organiser at the GMB union, said the “main concern for GMB is that the
Belfast sites remain as a single entity and they don’t get broken up”.
“Given the history of the site and the fact they employ
nearly 3,000 employees any sale could have huge implications on the local
economy.”
Spirit in Belfast declined to comment on the letter but
said: “As commercial negotiations continue many options remain possible.”
A spokesperson for Northern Ireland’s economy ministry said:
“The potential acquisition of Spirit AeroSystems is a commercial discussion
between two companies. The economy minister is being kept informed of the
ongoing discussions. It would not be appropriate to comment as these
discussions continue.”
Airbus said it was “in early-stage discussions on a variety
of options, including acquiring from Spirit AeroSystems some of the activities
that they carry out for us”.
Bombardier said it would “not comment on Spirit’s
activities” but added “we expect our supply contracts to be maintained to the
highest standards of quality and performance in any outcome”.