25928
First Airbus Plant Opens in US
World Economy

First Airbus Plant Opens in US

Europe’s leading jetmaker, Airbus, has inaugurated its first production facility in the United States. The move is a direct affront to its American rival Boeing as the France-based company snatches up more market share.
For many workers in Mobile, Alabama, industrial action is something done by Europeans, DW reported.
In fact, there are hardly ever walkouts or protests by unruly employees. That’s because there are hardly any unions.
The state also has one of the lowest minimum wages in the country–$7.25, or €6.41, per hour.
Overall, for companies looking to unburden themselves from the high cost of unionized labor in Europe, the conservative, southern state drives a pretty hard bargain, one that has resounded with at least one major airplane maker across the Atlantic.
In 2012, Airbus announced it would spend $600 million to build a new assembly plant for its most popular line of aircraft–the single-aisle A319, A320 and A321 jets. The company, which is based in Toulouse, France, said it expects 5,000 new orders to come in from North America within the next 20 years.
The new plant will help boost Airbus’ market share in the US because the company eventually plans to employ some 1,000 local workers. That “Made in USA” stamp is important to many American buyers.
Proof of that came three years ago, when the French jetmaker still had only a 20% share of the US market. Since stating its intention to build a plant in Alabama, that share has doubled.

 Assembly Facility
The new plant will serve as an assembly facility. The airplane parts will be manufactured at Airbus’ other European locations in Hamburg, Germany, and Toulouse and shipped across the Atlantic.
Any additional logistics costs would be counterbalanced by the lower cost of labor in the US, the company said. Airbus’ presence in the US would also diversify the company’s currency exposure, which could be beneficial if the euro gets stronger again.

 Beats Boeing
Airbus won a $1.33-billion deal on Tuesday to supply air refueling tankers to South Korea. The A330 MRTT allows aircraft to take off with more weapons.
The A330 MRTT–a military derivative of the A330-200 airliner–was selected over Boeing’s KC-46A, the military procurement agency in Seoul said, because of its price and performance as well as the amount of personnel and cargo it can carry.
South Korea will buy four of the Airbus aircraft, for a total of 1.488 trillion won ($1.33 billion). The country joins Australia, Britain, the UAE, Saudi Arabia and Singapore in adopting Airbus’ air-to-air refueling and transport aircraft.

 

Short URL : https://goo.gl/VmLErq
  1. https://goo.gl/N5TnpR
  • https://goo.gl/yFTHVr
  • https://goo.gl/mD45mN
  • https://goo.gl/whwxsm
  • https://goo.gl/8QiMbE

You can also read ...

Norway CB to Develop Digital Currency
Norway’s central bank, Norges Bank, is considering developing...
Higher oil prices mean more money in the oil industry’s pockets and that will spillover into wages, jobs and tax revenue.
Canada’s economy continues to show signs of strength, but not...
Exports of cloth, cotton yarn and  value-added textiles make up almost 60% of the total exports.
Businessmen in Pakistan have expressed concern over the...
Fraud, Money-Laundering on the Rise in Singapore
Over a third of Singapore businesses said they were hit by...
Corporate Japan Learns to Boost Profitability
Japanese listed companies continue to improve their ability to...
Opening up the automobile sector to foreign firms put an end to a “protection period” for domestic brands.  The picture shows Tesla enters China’s domestic car brands.
The constant widening of opening up in China's manufacturing...
Fake Ramadan Discounts in Sharjah
Commercial outlets and shops with fake promotional offers and...
Vietnam Trade, Service Sectors Need Revision
The development of wholesale and retail infrastructure in...

Trending

Googleplus