Business and energy minister Michael Fallon announced up to £25m of government funding for aerospace research at the Paris Air Show today.
The £25m government fund will be targeted at small and medium sized aerospace suppliers who will be invited to submit bids for a share of the fund later this year.
The Technology Strategy Board will hold the competition to find winning businesses. The winners will match the £25m fund creating up to £50 million of total investment.
The £25m is part of a 10 year strategy from the Government to invest £1.6bn to back its industrial strategy.
The National Aerospace Technology Exploitation Programme (NATEP) also launched today and will supply £40m to address skills shortages and improve research and development collaboration.
This £40 million project is supported by £23 million from the second round of the government’s Advanced Manufacturing Supply Chain Initiative (AMSCI) and £17 million from industry.
Both funds mean a total of £90m will be invested into the UK aerospace industry.
Mr Fallon said: “We have a world-leading aerospace sector underscored by our ability to excel in areas like research & development. It’s this commitment to innovation through our Aerospace Industrial Strategy that will be a crucial driver for long-term growth.
“If we are to get ahead of the game we must create the right conditions now that incentivise businesses to invest in the UK and develop new, exciting products. This new funding will help to do just that and also ensure a high level of quality projects receive the support they need to get off the ground.”
Graham Chisnall, deputy CEO of ADS, highlighted the benefits NATEP will provide to keep the British aerospace industry competitive.
“The National Aerospace Technology Exploitation Programme will embed important new technology and capability into the UK supply chain. Helping smaller companies to invest and develop new technologies will help us achieve long term competitive advantage.
“This funding shows that the work of the Aerospace Growth Partnership is delivering benefits at all levels of the supply chain and closely co-ordinates with the work of the Aerospace Technology Institute.”