Two aerospace manufacturers that supply industry giants including Airbus, GKN, Magellan and Leonardo have agreed a merger.
AVPE and Redcliffe Precision, which are both based in Bristol, have formed the AVPE Group.
The combined business will employ 75 people and both sites, which make machined aerospace components, will stay open, the company said.
The group will also continue to provide parts for aircraft including the Airbus A350, A220 and A320 from its two sites in the city.
Duncan Frame, chief executive of the AVPE Group, said: “This merger is a fantastic opportunity to bring together two great businesses, broaden the capabilities on offer to our customers and invest in our competitiveness.
“The enlarged group will have dual-site operations, deep technical expertise and a robust financial platform – attributes that will be critical as the aerospace industry recovers from the impact of Covid-19.”
AVPE Group said no jobs were being lost as a direct result of the merger but confirmed it was “reviewing several options” after a drop in demand caused by the coronavirus outbreak.
The company said a consultation was “underway” but would not confirm how many jobs were affected.
“This merger will put us in a strong position to win new packages of work as the industry recovers,” a spokesperson said.
“Unfortunately, like all aerospace manufacturing businesses, we have been affected by the impact of Covid-19 on global aviation and to remain competitive at current market demand levels we are reviewing several options to reduce our costs.
“Regrettably, this may include some positions becoming redundant, but as a consultation is underway it would not be appropriate to comment further.”
The leadership team will continue to work across both locations and the combined business will include CNC milling, turning, grinding and thread rolling, as well as component assembly and supply-chain management, AVPE Group said.
The company’s customer base will include aerospace manufacturers throughout the UK, Europe and Asia.
Mike Love, chairman of Redcliffe Precision, said: “This announcement marks the start of a new chapter for Redcliffe Precision as part of AVPE Group.
“The combination of AVPE and Redcliffe presents a stronger, more capable partner for our customers, and a business that will offer competitive solutions to new market sectors.”
The news comes as another UK aerospace manufacturer announces plans to close its factory. Gardner Aerospace said the Covid-19 triggered the “seismic economic downturn”.
Bosses said the company was “dependent on the requirements of Airbus and a number of commercial aircraft platforms” citing Airbus’ 40 per cent cut in production in a letter to employees.
The proposal is to phase the closure, starting this month and completing in September.
