Aircraft

Airbus has selected Magellan Aerospace's UK subsidiary for new work packages and further wing work, prompting the aerospace supplier to invest £3.5 million ($6.9 million) in new equipment and facilities.

Magellan designs, engineers and manufactures aeroengine and aerostructure assemblies and components. It values the contract, which has stemmed from the Airbus Power8 cost-cutting plan, at £300 million and says it includes substantial new work packages.

The firm adds that the agreement will secure its Wrexham facility's workload until 2012, increasing its order value from around £35 million this year to £72 million in four years' time. As it prepares to take on the additional work, Magellan UK is investing £3.5 million in improving its Wrexham division's production machinery.

Magellan chief executive Jim Butyniec says: "We are delighted that we have been able to secure the future of our workforce in Wrexham and Bournemouth. As a result of this agreement we continue as one of the largest suppliers of detail components to Airbus in the UK."