Alfor Aviation has made a landmark 50-year agreement with
Teeside Airport that will see the company relocate its global headquarters to Teesside and establish a major new aircraft conversion campus, creating 250 permanent high-skilled jobs and cementing the North East's position as one of Europe's leading aerospace manufacturing and logistics hubs.
The £50 million investment will see Alfor develop a purpose-built aircraft conversion facility, including new hangars, engineering workshops and warehousing, capable of converting up to 24 passenger aircraft into freighters every year once fully operational.
Construction is expected to begin shortly, with the new facilities entering service by the end of 2027.
The announcement represents one of the most significant investments in the UK's aircraft conversion sector and follows Alfor's unveiling of its revolutionary Internal Loading System (ILS) technology, the biggest breakthrough in freighter conversion since World War Two, at the Farnborough International Airshow. The company's approach to passenger-to-freighter conversion, which allows aircraft to be repurposed without cutting a large cargo door into the fuselage, is expected to reduce air cargo conversion costs by almost 40% while significantly accelerating aircraft turnaround times.
The development will also make Teesside the company's global headquarters, bringing together executive management, engineering, aircraft conversion, logistics and support functions on a single site.
A decisive factor in Alfor's decision was the unrivalled commercial advantages offered by Teesside Freeport. As the UK's largest free trade zone, spanning approximately 4,500 acres across Teesworks, Wilton International, the Port of Middlesbrough and Teesside International Airport, the Freeport provides businesses with significant tax and incentives, including savings on import duties, business rates and qualifying capital investment, alongside exceptional multimodal connectivity by air, road, rail and sea.
Omer Mafa, CEO and 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.”
Lord 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.”
The new conversion centre will significantly expand Alfor's production capability beyond its original plans, allowing the company to support growing global demand for passenger-to-freighter conversions as e-commerce, express freight and integrated logistics networks continue to expand worldwide.
Alfor estimates that an ILS conversion can be completed at roughly half the cost of a conventional main-deck cargo door conversion, while significantly reducing conversion lead times.