Boeing picks UK for first European factory

Boeing has chosen to open its first European factory in Britain, the US aircraft giant said Friday, in a boost for UK manufacturing ahead of Brexit.

The 20 million-pound ($25-million, 23 million-euros) facility employing 30 people will be in the city of Sheffield, northern England. Boeing said it would start recruiting staff from next year.

Boeing Sheffield will supply wing parts for the group's 737 short-haul and 777 wide-body passenger planes, a statement said.

Boeing, which employs 2,000 non-manufacturing roles in Britain, added:

"Our decision to start manufacturing high-value components in the UK is a step-change in our engagement and a further example of Boeing's commitment to grow here, supporting the UK's long-term prosperity," Michael Arthur, president of Boeing Europe, said in the statement.

The announcement comes after US President Donald Trump has warned US companies that moving production abroad could see them face substantial taxes when goods are re-imported.

Boeing on Friday said its move abroad "is part of a broader plan... to begin in-house manufacturing of key actuation components and systems in the US and the UK to enhance production efficiency and reduce cost in its supply chain".

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