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News Airbus Gives off Warning on Brexit: China gets Wing Manufacturing

Discussion in 'Business News & Resources' started by Erik, Nov 21, 2017.

  1. Erik

    Erik

    Joined:
    Sep 26, 2012
    Messages:
    2,588
    Slowly but surely, some businesses are feeling the effects of Brexit, and how it will unfold for the country.

    Airbus has long been doing the design and manufacture of Airbus wings in the UK. This has been quite known and become well part of the UK aerospace business.

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    The problem is that, each part is exported into the EU, in which with Brexit, came with worries about customs charges and other issues moving these parts from border to border. This is something thought of by the company, and with that, now looking into China as an alternative to build these wings.

    On a matter of personal opinion, the UK will be beat out with just labour costs alone by China. Add in with probably an easier transition of borders, and a better dealing with customs, it's pretty obvious that most companies who are too concerned of Brexit begin to lean on China to do business. This will sound bad for the country, and the gov must do well to have a great customs and border deal with the EU to ease off woes of big names such as Airbus.

    Until then, all we could do now is watch as Brexit unfolds.
  2. Pembroke

    Pembroke

    Joined:
    Feb 10, 2011
    Messages:
    39
    I must have missed something here, how does shipping wings from the UK outside of the EU differ from shipping wings from China also outside of the EU and a lot further away? Won't the transport costs alone wipe out any savings that airbus could make by having the wings made in China and increase the risk to the wings themselves moving them half way around the world presumably by boat.

    Maybe airbus plan to move the whole manufacturing process to China, after all if producing the wings in China is cheaper it stands to reason that producing all the other components and the final assembly over there is cheaper as well.
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