Boeing to open first European factory, to invest 20 million pounds

(Reuters) - Boeing Co (NYSE:BA - News) said it would invest 20 million pounds ($24.98 million) to open its first production facility in Europe to make components for certain aircraft.

The 25,000 square feet facility in Sheffield, UK will make actuators for Boeing's next-generation 737, 737 MAX and 777 aircraft, the company said. (http://bit.ly/2mlevPh)

Actuation systems extend and retract wing flaps during different phases of flight.

Boeing said the Sheffield factory will work closely with its Portland, Oregon plant which makes machine parts, gear systems and flight controls.

The investment in UK is part of Boeing's strategy to start in-house manufacturing of key actuation components and systems in the United States and UK to reduce cost in its supply chain, the company said.

The Sheffield plant will employ about 30 people, and the company expects to recruit them as early as 2018, Boeing said.

($1 = 0.8005 pounds)

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)