MONTGOMERY, Ala. - Officials say that a planned Airbus aircraft assembly plant in Alabama will cost $600 million to build and employ 1,000 people when it reaches full production.
Two state officials with knowledge of the company's plans say that Airbus' first assembly plant in America should create about 2,500 construction jobs, and it will turn out about four planes a month in 2017. The officials spoke to The Associated Press condition of anonymity because they weren't authorized to discuss the plant ahead of an official announcement Monday.
The plant will produce single-aisle passenger planes that will compete with Boeing.
One analyst believes the Airbus plant could pose a threat to Boeing and its 737's.
"They'll suddenly have delivery slots available They'll be able to take market share away from Boeing. And there isn't a think Boeing can do about it,” said Scott Hamilton.
An Alabama Airbus plant would allow the European company to use the "Made in the USA" label. That could help it win defense contracts since its stinging loss to Boeing in the Air Force tanker deal.