Airbus to expand Ala. jet plant
MOBILE, Ala. — European aircraft manufacturer Airbus will expand production at its plant on the U.S. Gulf Coast in Alabama, where it will spend $40 million to construct new facilities and add 275 jobs, the company said Thursday.
As part of a plan to build 63 aircraft in its A320 family of planes per month, Airbus said it would increase production at its factory in Mobile to seven airplanes monthly by early next year.
The Boeing Co. rival, which began producing aircraft in Mobile in 2015, employs about 1,000 workers at the site assembling A220 and A320 models. The company added about 600 jobs in the city last year.
The expansion announcement, which puts Airbus on a pace to produce more than 130 aircraft annually in Alabama, came amid a tariff dispute.
A World Trade Organization panel ruled in December that the European Union had not complied with an order to end illegal subsidies for Airbus. The Trump administration imposed tariffs on nearly $7.5 billion worth of EU goods in October.
Airbus said it employs about 4,000 workers at 38 locations in 16 U.S. states.
CEO of British Airways parent to retire
LONDON — The parent company of British Airways and Iberia said Thursday that longtime CEO Willie Walsh is retiring.
International Airlines Group, or IAG, said Iberia’s chief executive, Luis Gallego, will replace Walsh.
Launched in 2011, IAG says it serves more than 268 destinations and carries 113 million passengers each year. Last year British Airways launched seasonal service between Charleston and London and plans to resume the twice-weekly flights in 2020.
IAG made a net profit of $3.2 billion in 2018, the last full year for which figures are available.
IAG is continuing to expand, announcing last September it had agreed to buy Spanish rival Air Europa for $1.1 billion.
Strikes have recently disrupted services at British Airways, however.
China economy czar to sign trade deal
BEIJING — China’s government says its economy czar will go to Washington next week for the signing of an interim trade deal.
The Commerce Ministry announcement was the first official confirmation of expectations Vice Premier Liu He would attend the signing.
The ministry said Liu would be in Washington from Monday to Wednesday. Under the “Phase 1” deal, China agreed to buy more American farm exports and Washington postponed additional planned tariff hikes on Chinese imports. The two sides have yet to release details.
Fugitive Ghosn takes on Japan justice
TOKYO — Though former Nissan chairman Carlos Ghosn is unlikely to stand trial in a real court, he has made himself a key witness in putting Japan’s justice system on trial.
In his first public appearance after fleeing to Lebanon, the onetime South Carolina-based tire executive described unfair detention conditions and being presumed guilty of the financial misconduct charges against him.
Japanese officials said Ghosn had “only himself to blame” and credited the nation’s extremely low crime rate to a judicial system rooted in “its history and culture.” But advocates of reform say Japan’s high conviction rate indicates suspects enter the courts carrying a presumption of guilt rather than innocence.
Pork prices push up China’s inflation
BEIJING — Soaring pork prices that nearly doubled in December kept China’s inflation at a seven-year high despite government efforts to ease meat shortages caused by a disease outbreak.
Surging inflation adds to challenges for communist leaders who are trying to reverse a slowdown in economic growth and resolve a tariff war with Washington.
Government data showed pork prices rose 97 percent over a year earlier despite increased imports of China’s staple meat and the release of supplies from stockpiles. Pork supplies have plunged after authorities destroyed animals and blocked shipments to stop an outbreak of African swine fever.
Mortgages at lowest level in 13 weeks
WASHINGTON — U.S. long-term mortgage rates fell this week to their lowest level in 13 weeks, as financial markets roiled by U.S.-Iran conflict pushed investors toward the safety of Treasury bonds.
The yield on Treasury bonds, especially the 10-year note, tends to influence mortgage rates. Mortgage buyer Freddie Mac said Thursday the average rate for a 30-year fixed-rate mortgage dropped to 3.64 percent from 3.72 percent last week. The benchmark rate was 4.45 percent a year ago.
The average rate on a 15-year mortgage declined to 3.07 percent from 3.16 percent.
Mack Trucks to cut 305 jobs in Pa.
MACUNGIE, Pa. — Mack Trucks plans to lay off 305 employees at its assembly plant north of Philadelphia, the company said Wednesday.
Mack blamed the layoffs at its Lower Macungie Township plant on a downturn in the heavy-duty truck market. They will take effect at the end of February, The Morning Call newspaper reported. The cuts represent about 13 percent of the plant’s payroll.
“We regret having to take this action, but we operate in a cyclical market, and after two years of extremely high volumes, we have to adapt to reduced market demand,” said Mack spokesman Christopher Heffner.
The cuts were expected after Mack said last month that it would need to slow production to cope with reduced demand. Mack expects the North American truck market to be down nearly 30 percent this year.
