Theresa May will promise extra investment in the aerospace industry following Brexit concerns surrounding the industry.
The prime minister plans to reassure aviation bosses that Britain will remain a leader of aerospace innovation just days after Airbus (EPA: AIR) threatened to reduce UK presence.
“By working closely together, Government and industry have ensured we remain at the forefront of civil aviation and that our air power is second to none,” she will say at the Farnborough Airshow.
“Today I want us to build on that, and ensure not only that we retain our prominence, but that in an increasingly competitive industry we make the most of the opportunities that lie ahead.”
May will announce over £300 million worth of government money for projects including research on more environmentally-friendly aircraft.
Tom Enders, the boss of Airbus UK, announced in June that could pull production out of the UK if a transition deal is not reached.
Airbus employs 14,000 people in the UK. Enders has criticised the government’s approach to Brexit, saying the government has no idea how to take the UK out of the EU without damaging the country.
“Brexit in any form, soft or hard, light or clean – whatever you call it – will be damaging,” said Enders.
More recently, Enders has said that “HM Government are going in the right direction.”
Airbus rival Boeing (NYSE: BA) has said they plan to keep investing in the UK.
“We are going to continue to grow in the UK regardless of how Brexit plays out,” said Dennis Muilenberg, boss of Boeing.
Muilenberg added that he still had concerns over whether “we continue to see free flow of goods and services”.
ADS has also welcomed the government’s plans.
“The international political, military and business leaders visiting Farnborough will be reassured by last week’s Brexit White Paper and are keen to hear more about the UK’s post-Brexit ambitions,” said chief executive Paul Everitt.