Teesside International Airport has secured a landmark 50-year deal with aerospace innovator Alfor Aviation, bringing approximately 250 highly skilled jobs and a £50 million investment to the region. The agreement, announced at the Farnborough International Airshow, will see Alfor Aviation establish a new aircraft conversion campus and relocate its global headquarters to Teesside.
Investment Details and Job Creation
The investment will fund the construction of an aircraft conversion facility, including new hangars, engineering workshops, and warehousing. When fully operational, the site will have the capacity to convert up to 24 passenger aircraft into freighters annually. Building work is expected to begin shortly, with operations slated to start by the end of 2027.
Alfor Aviation will generate 250 permanent high-skilled positions at its new base. The company's decision to transfer its global headquarters to Teesside underscores the airport's standing as one of the world's fastest expanding aviation hubs, according to executives.
Strategic Importance for Teesside
Phil Forster, managing director of Teesside International Airport, said: "This is a landmark investment for Teesside Airport and another major endorsement of the ambitious growth strategy we have been delivering over recent years. By bringing its unique technology to Teesside, Alfor will establish the airport as a centre of excellence for air freight innovation. Aircraft will be converted here and will also be flying from here, further strengthening Teesside's role in the future of international cargo aviation."
Forster added: "Our business park is attracting multi-million-pound investments from leading global companies which recognise Teesside as a place where they can invest and grow. Alfor's decision to establish its global headquarters here is the latest example of that success. The combination of our land availability, Freeport status, excellent connectivity and skilled workforce is creating opportunities that are benefiting not only the airport itself, but the wider Tees Valley economy."
Alfor's Proprietary Technology
Alfor's proprietary technology allows aircraft to be adapted for freight operations without the need to cut a large cargo door into the fuselage, dramatically reducing costs and accelerating turnaround times. This innovation positions Teesside as a centre of excellence for air freight innovation.
Freeport Status as Key Factor
Senior figures at Alfor cited the commercial benefits provided by Teesside Freeport as a pivotal factor in their decision. The zone offers considerable tax and customs incentives, alongside the airport's strong connectivity via air, road, rail, and sea. After a thorough assessment of possible sites throughout Europe, Alfor determined that Teesside presented the most compelling blend of industrial capacity, logistics infrastructure, skilled labour, investment climate, and long-term expansion prospects.
Omer Mafa, director of Alfor Aviation, said: "This is a transformational moment for Alfor Aviation and a major vote of confidence in both the United Kingdom and Teesside. We examined numerous locations across Europe for our long-term home, but nowhere matched what Teesside offers. The region is booming, its industrial heritage is being matched by an exciting modern vision for advanced manufacturing, and the opportunities for long-term growth are exceptional."
Mafa continued: "The deciding factor was Teesside Freeport. As the UK's largest free trade zone, it provides exactly the kind of internationally competitive environment innovative aerospace businesses need. The combination of customs advantages, tax incentives, investment support and world-class connectivity creates an ecosystem unlike anywhere else in Europe. By relocating our headquarters here and investing for the next 50 years, we are making a clear statement about our confidence in the future of British aerospace manufacturing. From Teesside, we will build one of the world's leading aircraft conversion operations, creating highly skilled jobs, supporting the regional economy and helping position the UK at the forefront of the next generation of global air cargo."
Political and Economic Impact
Ben Houchen, Tees Valley Mayor, said: "This is another huge vote of confidence in Teesside, our airport and the fantastic opportunities we are creating across our region. The investment is a clear demonstration of how Teesside Airport is now an essential engine of economic growth in our region – attracting global businesses, supporting local public services through business rates, and creating well-paid careers for local people. When I brought our airport back into public ownership, I made a commitment to use it as a catalyst for jobs, investment and long-term prosperity. This landmark agreement shows that strategy is delivering real benefits, with major international companies choosing Teesside and helping us build a stronger, more prosperous future for generations to come."
