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Airbus Suspends Production at Alabama Plant

By Howard Smith – Apr 6, 2020 at 1:59PM

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The aerospace company is pausing some production to match customer demand.

Airbus (EADSY -0.51%) has updated its production activities related to the COVID-19 pandemic. The world's largest plane maker said that it is suspending production at its Mobile, Ala., plant, as well as two facilities in Northern Germany. On March 17, 2020, it paused operations in France and Spain to address health and safety measures needed to address the pandemic. 

Today's announcement stated the production shutdowns are due to high inventory levels, as well local recommendations and requirements due to the coronavirus outbreak. Commercial aircraft production at its Bremen plant in Germany will be suspended until April 27, 2020, while the Stade plant will pause until April 11, 2020. In Alabama, where the company manufactures A220 and A320 aircraft, production will be down from this week until the end of the month. 

Covered aircraft engines being stored

Image source: Getty Images.

Meeting customer demand

The company said that key business support services will continue at the facilities, including those related to product safety, parts and components receiving in Alabama, as well as "critical administrative support and preparation of activity restart." Airbus says it is committed to meeting customer demand, which has shrunk as airlines reduce their capacity.

It noted that all ongoing activity will meet current hygiene and social distancing requirements. During the course of the epidemic, the company said it has implemented strict health and safety measures for its employees, while attempting to maintain business activities.

Production and assembly have since resumed in France after a four day shutdown to implement needed measures related to operating during the pandemic. Operations in Spain, as well as the UK and Canada, have remained halted to align inventory levels as well as to adhere to current local restrictions. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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