A Government loan of £340 million will help protect over 1,000 jobs at an Airbus factory in North Wales.

Staff at the Flintshire factory, which produces wings for Airbus aircraft, celebrated after the announcement from Business Secretary Peter Mandelson, who added that the funds would assist with the development of the latest passenger jet, the A350 XWB.

He said: “The UK’s aerospace industry is world-class and capable of competing successfully across the world. We recognise the vital role Airbus, and its supply chain, play in the UK.”

Factory boss Brian Fleet said most of the 1,200 jobs would remain at the Broughton factory in Flintshire.

He said: “This is a major step forward. Work on the A350 North factory is on track and on cost.

“Assembly of the A350 wings is due to begin in the last quarter of 2010.”

The wings will be produced in a purpose built factory that costs £71 million.

It is believed that 5,000 jobs across the UK will be saved as a result of the government loan, and 493 orders for the new extra wide-bodied aircraft have been placed.

Airbus competitor Boeing slammed the loan, claiming it gave Airbus an unfair advantage.  The A350 is a long-haul wide bodied aircraft designed to compete with Boeing’s 777 and 787 which is due for release soon.

Lord Mandelson denied that the launch was a subsidy for the aerospace industry, adding that: “This is neither a bail out nor a subsidy. This is a first rate investment in British engineering expertise.”

Quotes thanks to Wales Online. For more information on this article please visit their website at www.walesonline.co.uk