Alfor Aviation has agreed a landmark 50-year deal with Teesside Airport that will see the company relocate its global headquarters to Teesside and establish a major new aircraft conversion campus.
The £50 million investment will create 250 permanent high-skilled jobs and cementing the North East’s position as one of Europe’s leading aerospace manufacturing and logistics hubs and 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.
The new conversion centre allows 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.
The new facilities are planned to enter service by the end of 2027.
The announcement follows Alfor’s unveiling of its Internal Loading System (ILS) technology, which it says is the biggest breakthrough in freighter conversion since World War Two. 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 per cent while significantly accelerating aircraft turnaround times.
Alfor sees 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 customs 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.
“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.”
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. 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.”
Phil Forster, Managing Director at 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 be converted here and will also be flying from here, further strengthening Teesside’s role in the future of international cargo aviation.
“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. We are proud to welcome Alfor Aviation and look forward to supporting its growth over the decades ahead.”
