UK Defence Giant Looks to Sell its US Aerospace Division
The UK’s aerospace giant BAE Systems is reported to be looking to sell its US aerospace facilities for 1.3 billion pounds.
BAE is reported to have instructed its bankers JP Morgan to locate a buyer for its platforms division in the United States which focuses on electrics and engine controls systems for commercial and military aircraft.
Those reviewing this commercial move by BAE suggest the decision comes in response to defence cuts both here in the UK and across the Atlantic in the US. Reporters believe the forthcoming Strategic Defence Review will reveal a huge fifteen percent cut in the UK’s defence budget and with the Ministry of Defence still undeceive about where the funds will come from for the Trident defence system, and the five billion pound project to build two new aircraft carriers which BAE is heavily involved in nerves will be tense.
The United States projects account for nearly half of all BAE aerospace funds but things aren’t looking promising in the States either with the announcement that America is looking to cut over one hundred billion dollars from its military spending over the forth coming five years.
This announcement from BAE comes shortly after it has announced the loss of one thousand jobs across four UK work sites.
Published by G&O Springs - Producing springs for the aerospace industry
September 5, 2010
