New Airbus plant could pose threat to Boeing
Jul 2, 2012, 1:59 PM | Updated: 3:23 pm
Alabama Gov. Robert Bentley, right, and Airbus President & CEO Fabrice Bregier celebrate the announcement that Airbus will establish its first assembly plant in the United States in Mobile, Ala., Monday, July 2, 2012. The French-based company said the Alabama plant is expected to cost $600 million to build and will employ 1,000 people when it reaches full production, likely to be four planes a month by 2017. (AP Photo/Dave Martin)
(AP Photo/Dave Martin)
Boeing’s archrival Airbus has taken a big step in the battle to dominate the global aviation industry.
It’s European aerospace giant’s first foothold in the U.S. to compete with Boeing. The plant will make passenger airplanes.
Airbus announced Monday it will spend $600 million to build a plant in Alabama, its first in the United States.
“This day will shape the future of region for years to come,” Alabama Governor Robert Bentley said during the announcement.
The two companies have had a long-running international trade dispute. Each also has been critical of subsidies received by the other.
Boeing has employed hundreds of people in Alabama for years. Airbus had planned to build in Alabama previously to manufacture refueling tankers for the U.S. Air Force. But its parent company, the European Aeronautic Defense and Space Co., lost the contract to Boeing in 2011.
The plant will employ 1,000 people when it reaches full production, of four planes a month by 2017.
The Associated Press contributed to this report.
