I noted some interesting comments by the former Welsh Conservative leader Andrew RT Davies, who unexpectedly resigned last week, after he had accused Airbus of "hyperbole" over the Brexit risk assessment they published recently (HERE). In some interviews someone must have mentioned a move to China although it's not in the press release (HERE) or the assessment itself. Anyway, Davies is reported as saying:
"Clearly Airbus is an important company to the United Kingdom and to Wales - but it's worth remembering that it's the dynamic highly skilled UK workforce that has made Airbus the success it has become.
"Talking so casually about de-camping to China does those workers a disservice, and you'd think that Airbus was the first company to entertain slashing costs and by extension standards - and it doesn't usually end well."
He talks about Airbus "decamping" to China. He doesn't seem to know that Airbus already have a sizeable operation in China (HERE) and have had since 1994. In fact it recently recently delivered its 1000th commercial airliner from a plant that provides 25% of the company's world-wide output. I noted also in another report that someone in the local town thought Airbus was talking about "setting up" in China. Err, no, they have already done that.
By putting ourselves outside the single market the UK factory would be on the same footing as the Chinese one (same third country import procedures) but I assume with considerably lower costs. The cost savings would easily pay the extra flight costs by their Beluga aircraft that carry wings from North Wales to Toulouse.
And it rather takes the edge off the UK being the only location with a "dynamic and highly skilled workforce". Airbus will be well aware of the relative cost and efficiency of making wings in China compared to North Wales so he ought to consider that before speaking out.
The feeling of British exceptionalism is strong in Mr Davies since he genuinely thinks Airbus came here because we had specialised wing makers that don't exist anywhere else in the world. Assembling airliners from parts made all over Europe is really not a cost effective way of working but it was done because several EU governments contributed to the start up costs and so each wanted a bit of the cake. Once we're out why would Airbus continue in the longer term making wings in North Wales?
Will Brexit strengthen or weaken Airbus' commitment to North Wales? That's the question.
