Airbus to end production at one Spanish plant

Airbus is discussing plans to combine the operations of its two aerospace factories in Cadiz, southern Spain, into one plant spanning civil and defence activities, a spokesman said. The politically sensitive move could lead to one of the first significant factory closures in the company`s 50-year history and reflects a slump in demand for the world`s largest jets, following a halt in production of the A380 superjumbo.

The proposal, which is subject to final union negotiations on matters such investment, would avoid compulsory redundancies in Airbus`s wider workforce in Spain: one of its core nations alongside France, Germany and Britain.

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It follows months of speculation and occasional worker protests over the future of one of the Cadiz plants, Puerto Real, which built part of the colossal A380`s tail section.

The two plants employ a total of about 800 people in an area of high unemployment.

Airbus said no decision had been taken on which plant in Cadiz would cease production, but a spokesman said Puerto Real would in any event have a role in the development of future industrial technology to be used across its European network.

A union official said that before closing one of the local factories, Airbus must agree to keep pre-pandemic employment levels in Cadiz and provide more work packages in the future.

Separately, Airbus rowed back on Wednesday from plans to sell off the production of mass-produced small airplane parts and said it would consider a union-backed proposal to keep the mainly Germany-based activities in-house.

Last month, Airbus cancelled plans to sell two larger aerostructures subsidiaries and announced a new proposal to hive off the production of small mass-produced parts into a new company with a view to selling that instead.

But in a further U-turn after meeting unions on Wednesday, the European planemaker said it would analyse a scenario that would involve keeping the activity "stand-alone within Airbus," while adding that it still preferred the plan to spin it off.