While rolls-Royce and Airbus used the Farnborough this week the International air show, to warn of the dire consequences of hard British exit from the EU, Britain’s biggest defence firm BAE system, just shrugged.
The business is the UK’s largest manufacturing employer, with 34,000 employees and sales of around £20 billion last year. But On Leaving The UK? “It’s just not so important [for us],” he believes that a firm that makes everything from ammunition, combat aircraft and submarines.
His statement is strongly at odds with other major companies operating in the Industrial world. The European aircraft manufacturing company Airbus is already stockpiling parts in preparation for the online the quarter and the month, and aircraft engine manufacturer rolls-Royce has admitted this week that he plans to do the same.
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Jaguar land Rover, the UK’s largest car manufacturer, has warned that £80 billion of planned investment in the UK over the next five years will be at risk if the UK were dealt a bad outlet UK online. Meanwhile, the wide automotive industry in the UK sounding the alarm on leaving the UK before the referendum.
Not so in EB that says as soon as trouble free trade Britain left the EU it would be good, but otherwise kept fairly quiet, in spite of its dominant position.
There are several key reasons for the apparent carelessness: first, BAE, mainly in the UK-American company. It has little direct trade with the EU, despite the income from sales abroad in total amount to £4.7 billion.
Secondly, it is a small batch producer of high quality defense kit, unlike automobile companies that are high-volume producers are highly dependent on just-in-Time parts delivery, where a RAID only a few hours at customs can seriously disrupt production schedules.
The average UK-built car has about 6000 parts, most of which come from the EU, according to the society of manufacturers and traders motor. Parts can pass back and forth through the channel multiple times for different processes before reaching the UK.
At the plant of Airbus in Broughton, North Wales, built the wings for all commercial aircraft, and then transported to other Airbus plants outside of the UK, including its headquarters in Toulouse, France.
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“As we have relative to companies for trade with the EU, the impact of the quarter and the month on our business is likely to be limited, depending on the transition and final agreements,” a spokesman for BAE said.
“However, we, like all businesses, want to see progress in negotiations between the government and the European Commission to give us all confidence”, she added.
EB works 83,200 people all over the world, mostly in the four hubs, only inside the EU is the UK. In the UK it employs 34,300 people, and no factories in Europe. The other three hubs in Saudi Arabia , Australia and the USA, where he works 29,100 people and accounting for about 40% of total business.
When BAE won the contract of £20 billion last month to build Australia’s new fleet of frigates of the Navy, he was captured by Theresa may as an example of how the UK can now rely on their close relations with allies such as Australia. But nine new class Hunter shipswill to be built in Adelaide and 4,000 new jobs created to build these ships will be in Australia.
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Even the Eurofighter Typhoon – Europe’s largest joint defence programme is mainly a British exit from the EU-proof. BAE is a member of the consortium, along with Leonardo and a division of Airbus, and the program is a four partner country transactions between Germany, Spain, Italy and the UK. Therefore, it is outside the EU.
George salmon, an analyst at hargreaves lansdown, says that although it would not be correct to say, a quarter or a month is absolutely zero threat to be, this is clearly much less danger than the others.
“There’s a simple reason EB does not predict the same level of disruption as others. Its main customers are USA, Saudi Arabia and the UK, in Europe only responsible for 8% of their income last year.
“On the other hand, rolls-Royce depend on European countries for more than 18% of total sales. Combine that with the comments that came out of the Airbus, large support rolls, and it’s easy to understand why the group will monitor the negotiations, leaving the UK with interest”.