Belfast has undergone many changes since the 1930s. The Short Brothers factory continued to produce planes and parts through the Second World War, the Troubles, and the decline of heavy industries.
But now, a takeover of Spirit AeroSystems by US planemaker Boeing has raised concerns about the future of this factory. Workers and politicians are concerned that a change in ownership could result in massive job cuts for one of Northern Ireland’s largest manufacturers, with about 3,500 workers.
Boeing announced on Monday that it would be acquiring Spirit for $4.7 billion as part of its efforts to gain control over parts of the supply chain following safety issues. Spirit is a major supplier of the A220 small passenger jet, as it produces its fuselage and wings. Boeing’s European rival had little chance of supplying Spirit, so the US company will give Airbus its US factories in Kansas, North Carolina, and Belfast.
Alan Perry, senior organizer at the GMB, which represents the workers in the factory, said that about 40% of its revenue is derived from the production of parts for Airbus. The rest of the revenue comes from other companies, such as Bombardier Rolls-Royce or Honda Aircraft.
He says that the real fear is about the remaining 60%. “We are still very much in limbo. “Even if Airbus stays on site, the factory will be broken up.”
Belfast’s industrial icons face a difficult situation. Harland & Wolff, the shipyard next door to Short Brothers, was forced on Monday to suspend its shares after failing to submit audited financial statements in time.
Airbus’ deal with Spirit is a clear indication that the assets Spirit has acquired are not attractive financially. Spirit will pay Airbus $442m (£559) to remove the operations from its hands prior to the Boeing merge. Spirit acquired Bombardier operations in Northern Ireland in 2011, Morocco in 2012, and Dallas, US, in 2013 for £211m.
Belfast’s operation, still trading under the historic Short Brothers name since 2016, hasn’t reported a profit in 2016. It has lost more than $1bn in the last ten years of financial reports, including $500m (£395m), when the coronavirus pandemic devastated the aircraft industry.
The oldest aircraft manufacturer in the world is facing a tough situation. It dates back to 1897 when Eustace and Oswald Short founded a balloon-making company. After hearing about the Wright Brothers’ successful demonstration, they began manufacturing in Hove and then London. They later switched to aircraft production after hearing about their success. The Shorts acquired the British rights to manufacture copies of the Wright designs, and set up the first aeroplane manufacturing factory in the world on the Isle of Sheppey in Kent, 1909.
Since then, it has been producing aircraft or parts continuously, first under government ownership from 1943 to 1989 and then as a part of Canada’s Bombardier, until Spirit purchased it in 2020.
This long history, which includes the Troubles in Northern Ireland that plagued the country for many decades and slowed the growth of the economy there, has helped it become a source of high-paying jobs in a part of the UK that is lagging behind.
Kevin Craven is the chief executive officer of ADS, the lobby group of the UK aerospace industry. He says that consolidation “shouldn’t be at the expense of the economic security of the sectors.”
He says that Northern Ireland continues to play a key role in UK advanced manufacture, providing exceptional capabilities which are world renowned for their high quality. It is essential that these engineering centres and advanced manufacturing footprints are maintained.
Hilary Benn could face a test if Labour wins the election on Thursday, as is expected. He has reportedly been briefed about the situation.
Local politicians are worried. Conor Murphy, the Northern Irish Economy Minister, said that he wants to “protect the future status” of highly-skilled workers. Ulster Unionist Party Finance spokesperson Steve Aiken stated that the government should ensure the work does not move elsewhere.
The takeover of the company could cause weeks of uncertainty for the employees, and this uncertainty may have an economic impact.
Perry says that the company is a large employer not just in east Belfast but also outside of it. The loss of jobs will “have consequences not only for the supply chain, but also in the wider economic environment”.
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