Alfor picks Teesside for global HQ & conversion hub

Alfor Aviation has agreed a 50-year lease with Teesside International Airport to establish its global headquarters and an aircraft conversion centre. The project involves a £50 million investment and 250 permanent jobs.

The Teesside site will serve as Alfor's European base for passenger-to-freighter aircraft conversions, with a purpose-built campus including hangars, engineering workshops, warehousing and support facilities.

When fully operational, the centre is expected to convert up to 24 passenger aircraft into freighters a year. The first facilities are due to enter service by the end of 2027 after construction begins.

Alfor assessed several sites across Europe before choosing Teesside, citing the airport's infrastructure, available land, workforce, international links and access to customs arrangements tied to Teesside Freeport.

Teesside International Airport is a designated customs site within the Freeport, which spans about 4,500 acres across industrial and logistics locations including Teesworks, Wilton International and the Port of Middlesbrough. Alfor believes the wider area's air, road, rail and sea links will support its UK, European and international operations.

Conversion plans

The investment centres on Alfor's passenger-to-freighter business. Its Internal Loading System uses an aircraft's existing cargo doors and an internal loading and lifting system, reducing the structural changes required in conventional main-deck cargo-door conversions.

According to the company, that approach can cut conversion costs by almost 40 per cent and shorten the time needed to return aircraft to service. The Teesside facility will bring together executive management, engineering, conversion, logistics and support operations on one site.

Alfor was established through a partnership between Turkish industrial group Alarko and British aviation specialists Foravia. It focuses on conversion work for the air cargo market, where demand has been supported by eCommerce, express freight and broader changes in global logistics networks.

Regional suppliers are also expected to benefit, with potential work across aircraft maintenance, engineering, manufacturing, construction, logistics, professional services, training and specialist aviation support.

"This is a transformational moment for Alfor Aviation and a major vote of confidence in Teesside and the United Kingdom," said Omer Mafa, Chief Executive Officer of Alfor Aviation.

"We considered a number of locations across Europe, but Teesside offered the strongest combination of airport infrastructure, available land, workforce capability, connectivity and long-term commercial opportunity.

"Teesside Freeport was also a decisive factor. The customs advantages, investment environment and multimodal connectivity provide the internationally competitive platform we need to develop and scale our operation.

"By establishing our global headquarters at Teesside Airport and committing to the site for the next 50 years, we are demonstrating our confidence in the region and in the future of British aerospace manufacturing.

"From Teesside, we intend to build one of the world's leading aircraft conversion operations, create highly skilled permanent jobs and support the continued growth of the global air cargo market.

Our work with ISS Group will continue beyond the lease agreement. ISS will remain a strategic partner as we establish the campus, develop our UK operations, build regional and international partnerships and deliver our long-term growth plans."

Airport role

For Teesside International Airport, the agreement supports efforts to build activity beyond passenger services. The airport has been positioning its estate for aerospace, maintenance, manufacturing and logistics investment.

Phil Forster, Managing Director of Teesside International Airport, said the deal would strengthen that strategy.

"Alfor's decision to establish its global headquarters and aircraft conversion centre at Teesside Airport is a major investment in the airport and the wider region.

"The agreement will deliver £50 million of investment, create 250 permanent skilled jobs and strengthen Teesside's position within the international aviation and aerospace sectors.

"Our airport offers the operational infrastructure, development land and connectivity required to support a business of this scale, while our position as a customs site within Teesside Freeport provides a clear commercial advantage.

"We are pleased to have agreed this long-term partnership and look forward to working with Alfor, ISS Group and the wider delivery team to establish a major aircraft conversion operation here at Teesside."

ISS involvement

ISS Group played a central role in securing the investment through its ISS Airview business. The group introduced Alfor to Teesside Airport and supported the location review, commercial negotiations and development of the investment case.

That work will continue as the project moves into delivery, including support on stakeholder engagement, supply chain development, skills partnerships, funding and wider market access.

Ammar Mirza CBE, Executive Chairman of ISS Group, said, "This agreement converts an international relationship into a major long-term investment for Teesside.

ISS Group identified the opportunity, brought Alfor and Teesside Airport together and supported the negotiations through to agreement.

Teesside Airport provides the infrastructure, land, connectivity and ambition required by Alfor, while Teesside Freeport strengthens the commercial case for locating such a significant international operation in the region.

The result is a £50 million investment, a new global headquarters and 250 permanent, highly skilled jobs.

This is not the conclusion of our work with Alfor; it is the beginning of a long-term strategic relationship. ISS Group will continue working alongside Alfor and Teesside Airport to support the development of the campus, connect the business with regional and international supply chains, secure wider partnerships and help deliver its long-term growth ambitions.

It is a strong example of how focused international engagement, trusted relationships and effective partnership can deliver tangible and lasting economic value for Teesside and the wider North East."