Britain is to open a new research centre to keep its aerospace industry world-class, backed by 2bn investment from business and Government over the next seven years.
The UK Aerospace Technology Institute will work on developing the next generation of faster, quieter and more energy-efficient aircraft, in an effort to maintain the industrys position as the biggest in Europe, second only to the US.
A core team of 30 to 50 staff, mostly seconded from industry and academic, will carry out aerospace research and development at a site likely to be based closed to a university, ministers said.
The institute forms part of a wider industrial strategy devised by business, Government and academics , which will focus funding on four key areas in which the UK already excels: wings, engines, aerostructures and advanced systems.
The Government pledged to provide more than 1bn in funding, which will be matched by companies. Officials said that represented fresh state funding, other than 90m announced in the last year.
Business Secretary Vince Cable said: This long-term commitment of 2bn investment in aerospace research and development - half Government, half private - will anchor the sector in the UK for a long time to come.
Ministers said the seven-year funding commitment, running into end of the next parliament, offered the long-term support the industry needed.
This is all part of rebalancing the economy and playing to our strengths, said Michael Fallon, the Business Minister. We are the best in Europe [in aerospace] but we cannot sit back. Its very important that we retain high-value manufacturing in this country.
Katja Hall, chief policy director at the CBI business lobby group, said: This is an ambitious strategy showing the Government can balance the long view with shorter-term priorities.
Separately, Indonesian carrier Lion Air agreed to buy 234 A320 jets worth $24bn (16bn) from European aerospace giant Airbus (Paris: NL0000235190 - news) , reflecting the countrys rapid passenger growth of 20pc annually.
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New UK aerospace institute planned with £2bn backing
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