GKN, Airbus reportedly close to Filton deal

GKN has been in negotiations with EADS to purchase the wing-manufacturing facility in Filton, U.K. A deal appears imminent.

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The Reuters news service reported on Aug. 5 that GKN Plc (Cowes, Isle of Wight, U.K.) expects soon to reach agreement with Airbus Industrie SA (Toulouse, France) parent EADS (Schiphol Rijk, The Netherlands) to acquire an Airbus composite aircraft wing manufacturing factory in Filton, U.K.

Airbus is selling the Filton facility, along with others in Europe, to supplier-partners as part of Airbus' Power8 production streamlining and cost-reduction program.

According to Reuters, the deal, under which GKN would build wing components for the Airbus A350 XWB wide-body jet, would add ₤400 million ($787.1 million USD) to GKN's annual revenues.

"We would expect to be signing contracts within the next couple of weeks. That would be a realistic timescale. There's a regulatory process which will take about 60 to 90 days beyond that," GKN chief executive Kevin Smith told Reuters.

Information: Click here for the original Reuters report.