Teesside lands £50m aerospace hub as Alfor Aviation plans 250 skilled jobs

Aircraft conversion specialist Alfor Aviation has chosen Teesside International Airport for a major new manufacturing and engineering operation, bringing its global headquarters and a 50-year commitment to the region.

Teesside International Airport is set to become home to a new £50 million aircraft conversion campus capable of transforming as many as 24 passenger aircraft into freighters each year.

Alfor Aviation has signed a landmark 50-year agreement to establish the facility at the airport, with the investment expected to create 250 permanent, highly skilled jobs.

The aerospace company will also relocate its global headquarters to Teesside, bringing its management, engineering, logistics and aircraft conversion operations together at the site.

Plans include purpose-built aircraft hangars, engineering workshops and warehousing, with construction expected to begin shortly. Operations are scheduled to start by the end of 2027.

The deal was secured following discussions at the Farnborough International Airshow and represents a significant boost to Teesside Airport's ambitions to develop its business park into a major aviation and advanced manufacturing cluster.

At the heart of Alfor's operation will be its new Internal Loading System (ILS), a technology designed to make converting passenger aircraft for freight operations faster and considerably less expensive.

Conventional passenger-to-freighter conversions can involve cutting a large cargo door into an aircraft's fuselage. Alfor's system removes the need for that major structural alteration, potentially reducing both conversion costs and turnaround times.

Once the Teesside facility reaches full capacity, Alfor expects it to be able to complete up to two aircraft conversions every month.

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 said the airport's available development land, transport connections, skilled workforce and position within Teesside Freeport were helping attract major international businesses.

Alfor selected Teesside following an assessment of potential locations across Europe, with the company citing the area's industrial capabilities, logistics infrastructure and long-term growth potential among the reasons for its decision.

Freeport status also played a significant role. The company expects to benefit from the tax and customs advantages available within the UK's largest free trade zone.

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 described Teesside Freeport as a deciding factor in the company's choice and said the 50-year investment demonstrated Alfor's confidence in the future of British aerospace manufacturing.

The development is also expected to generate opportunities beyond the 250 jobs directly created by Alfor.

A facility capable of processing dozens of aircraft annually will require support from manufacturers, engineering companies, maintenance specialists and aviation suppliers, potentially providing new contracts for businesses across Teesside and the wider North East.

Demand for passenger-to-freighter conversions is being driven in part by the continuing expansion of e-commerce, express freight and international logistics networks. Alfor believes its Teesside operation will give it the capacity to respond to that growing global market.

The agreement provides another commercial development for an airport increasingly being positioned as an economic asset as well as a passenger transport hub.

Tees Valley Mayor Ben Houchen said:

“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.”

With its headquarters, engineering capability and aircraft conversion operation concentrated at the airport, Alfor's arrival is intended to establish Teesside as a long-term base for the company's international expansion – and strengthen the region's position within the UK's aerospace and air freight industries.