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Wed, Jun 22, 2005

EADS Chooses Mobile, Alabama For KC-330

Offers Internships To Competitiors

EADS North America announced Wednesday that Mobile, Alabama's Brookley Industrial Complex has been selected as the site for the EADS KC-330 advanced tanker US production facility. An Airbus Engineering Center is scheduled to begin operations in 2006 and will be co-located with the future production facility if an Air Force contract is awarded.

The decision completes a five-month nationwide search for the location that will become the center of activity for the KC-330 - which is being offered to recapitalize the U.S. Air Force's aerial refueling fleet. The Staubach Company, an international real estate and management firm headquartered in Dallas, Texas managed the site selection process.

More than 70 sites from 32 states originally responded to EADS North America's Request for Information (RFI). The list of locations under consideration subsequently was narrowed to four candidate sites in Alabama, Florida, Mississippi and South Carolina.

"All four potential locations were very qualified candidate sites, with the Brookley Industrial Complex meeting or exceeding all of our requirements for the KC-330 production facility," said Ralph D. Crosby, Jr., EADS North America's Chairman and CEO. "We were extremely impressed by the winning proposal, and by the enthusiastic support from the city of Mobile, the Mobile Bay region, the state of Alabama, and its U.S. Congressional delegation. The selection of Mobile also serves the interests of neighboring Florida and Mississippi, which will contribute significantly to our employment base at the facility.

"I wish to thank Florida, Mississippi and South Carolina for supporting our efforts. I am pleased to announce that EADS will continue our relationship with these great states through the establishment of a five year, university-level cooperative/internship program conducted at the Airbus Engineering Center in Mobile. This unique program will provide selected students from each state the opportunity to work in the Center and gain valuable experience for future careers in aerospace engineering," concluded Mr. Crosby.

Mobile's Brookley Industrial Complex covers more than 4.5 million square feet of industrial space and includes the Mobile Downtown Airport, which is equipped with two large runways and is home to aerospace manufacturing, aircraft maintenance and air freight businesses. The Alabama State Port Authority's Choctaw Point Container Terminal and Intermodal Yard is directly adjacent to the Brookley site, providing the deepwater port access that is required for the KC-330 production facility's operation.

"This victory catapults Alabama toward a new era of growth in the aerospace and defense industries," said Alabama Governor Bob Riley. "Together, Alabama and EADS have united and are forging a partnership that will benefit both the hardworking citizens of our state and this world-renowned company."

"I am extremely pleased that Mobile has been selected for this production facility. Mobile is the ideal choice as it offers proximity to an airport and coastal waters as well as significant space to grow and expand," stated U.S. Senator Richard Shelby. "Modernization of the U.S. Air Force's aging tanker fleet is vital to America's defense and homeland security, and I am proud that Alabama is positioned to play a role as the future home of the KC-330 facility. Our country's military strength relies on a competitive industrial base, and I fully support an open and fair competition in the Defense Department's section of the Air Force's next tanker aircraft."

"We welcome the decision by EADS to locate its U.S. tanker production facility in Alabama," said U.S. Senator Jeff Sessions. "Alabama has successfully built a world renowned automotive industrial capability and now looks forward to becoming the next aerospace center of excellence for large aircraft production in the United States."

Congressman Jo Bonner added, "EADS will benefit from locating in Mobile and from some of the very finest employees in the U.S. workforce. The KC-330 aircraft assembled in Mobile will be the most capable Air Force refueling aircraft to enter the fighting force --built in America with American labor."

Development of the KC-330 industrial facility will begin as a new Airbus Engineering Center in the United States, with operations starting in early 2006 and its employment growing to approximately 150 persons. This facility is to support continuing engineering work on commercial Airbus models and military derivative aircraft - including the A330, A340 and A350 jetliners, as well as the KC-330 tanker.

Production will be initiated at the Mobile facility if the U.S. Air Force orders any KC-330 aerial refueling tankers. Activities will include aircraft final assembly, militarization and modification. Depending on the size and pace of the Air Force order, the total facility investment could reach $600 million, and direct employment levels could be as high as 1,000 workers --including a mix of structure mechanics, electronic and systems specialists, engineers, quality assurance personnel and management.

Once operational, the Airbus Engineering Center also will become home to the EADS cooperative internship program. Participating students will be selected from universities located in Florida, Mississippi and South Carolina. Each state will receive a $100,000 grant, disbursed over the five-year program, to support their engineering interns at the Center.

FMI: www.usaairtanker.com

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