Bombardier: Spirit takes over as industry looks to the future

Spirit is a major supplier to Airbus and Boeing

Northern Ireland's biggest manufacturing employer is finally under new ownership.

The 3,000 people who worked for Bombardier aerospace are now employed by Spirit Aerosystems.

This deal was announced more than a year ago. Since then the pandemic has changed the world.

Among manufacturers it's the aerospace sector which has faced some of the biggest challenges.

The customers of these firms, the airlines, are in a battle for survival and are in no position to be ordering new planes.

That is reflected in the terms of the Bombardier deal - Spirit is handing over $225m (£171m) less cash than originally agreed.

For the workforce in Northern Ireland the completion of the deal brings to an end a long saga.

Susan Fitzgerald of Unite says the mood among workers is 'sober'

So there is relief, tempered with realism about the challenges ahead.

"There's quite a sober mood," says Susan Fitzgerald from the Unite trade union.

"It is positive in the sense it brings to an end months of uncertainty and also sends a vote of confidence for the aerospace sector in Northern Ireland."

• US firm takes control of Bombardier in NI

Across that wider sector there are deep concerns about what the next few months will bring.

Boyce Precision Engineering in Portadown is a typical aerospace supply chain company.

Spirit Aerosystems is the new owner of Bombardier aerospace in NI

It has a small, highly-skilled workforce making parts for global clients.

The company had its best ever month in March, hitting sales of £500,000.

Then came the lockdown, the near shutdown of aviation and a steep downturn in sales.

"Sales in December will be around £50,000," says director George Boyce, "we need £150,000 a month just to keep the doors open."

"Some decisions are going to have to be made here pretty quick."

Investment Fund

Jobs have already been lost at the firm and Mr Boyce warns of much bigger consequences for the local economy unless there is targeted support.

"One hundred years of aerospace supply chain could go in the coming months. It's as simple as that."

Aerospace firms have been able to use the furlough scheme and government-backed loans but there hasn't been a specific scheme for the sector.

A spokesperson said the UK Government has made available over £9.5bn in grants, loans and export guarantees for the aerospace sector and its aviation customers since March.

They described aerospace as 'a critical part of the UK economy' and pointed to other funds made available for research and development.

But there hasn't been a specific scheme for the sector along the lines of those in France and Germany.

The industry body, ADS, is urging the government to participate in an investment fund.

Paul Everitt is the chief executive of the aviation industry body ADS

"What we're trying to put together is a fund which would include government money, money from industry and then access to private equity," says ADS chief executive Paul Everitt.

"The aim would be that the involvement of industry and government would allow a longer term and more patient set of investments.

"Many companies at the moment are not able or not willing to take on more debt, they want capital investment.

"A fund that's run independently gets round government's concern about taking direct stakes in businesses."

The local Department for the Economy says it will ensure the difficulties faced by NI companies are heard and understood within the UK Government.

"The sector has been, and remains, a high priority," a spokesperson added.