Engineering company Alfor Aviation has announced a 50-year agreement with Teesside Airport that will see the company relocate its global headquarters to Teesside and establish a major new aircraft conversion campus, creating 250 jobs.

The announcement, made at the Farnborough Airshow, includes a £50m purpose-built aircraft conversion facility, featuring new hangars, engineering workshops and warehousing, capable of converting up to 24 passenger aircraft into freighters every year once fully operational.

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Construction is expected to begin shortly, with the new facilities entering service by the end of 2027.

Omer Mafa, CEO and Director of Alfor Aviation, explained that the area bustling with aviation businesses was a factor in the decision to move there: “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”.

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.