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Airbus Chief Warns On Brexit Threat

One of the largest foreign manufacturing employers‎ in the UK has warned that future investment could be jeopardised by a British withdrawal from the European Union.

Paul Kahn, the ‎UK president of Airbus Group (Swiss: AIR.SW - news) , said on Wednesday that a so-called "Brexit" risked damaging the UK as a destination for future projects and could undermine the career prospects of young British engineers.

Speaking to Sky News, Mr Kahn, who took up his role last autumn, said it was the responsibility of businesses to speak out on the issue.

Stressing that Airbus's 16,000 UK jobs were not under immediate threat, he said: "If, after an exit from the European Union, economic conditions in Britain were less favourable for business than in other parts of Europe, or beyond, would Airbus reconsider future investment in the UK? Yes, absolutely."

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Airbus has been a long-standing manufacturer of aircraft wings in the UK, with facilities at Broughton in Wales and Filton, near Bristol.

The company is part-owned by the French and German states, but Mr Kahn denied that his stance was motivated by the political views of the two Eurozone governments, saying he had not discussed his remarks with shareholders.

Mr Kahn said: "If Britain were to leave the EU, would we suddenly close our factory in Broughton? No. With the barriers to entry that exist and the need for people with skill, passion and commitment, demanded by this type of advanced manufacturing, it would be impossible for us to start making our wings somewhere else for a number of years."

Mr Kahn's warning is arguably the most explicit to date from a business leader in the aftermath of the Conservatives' victory in this month's General Election.

Airbus is Wales's second-largest private sector employer behind Tesco (Xetra: 852647 - news) .

Earlier this week, Deutsche Bank (Xetra: 514000 - news) said it was establishing a working group to examine the potential consequences of a UK exit from the EU, while the chief executive of Vodafone urged Britain to remain a member of the bloc.

David Cameron is expected to set out plans next week for legislation to pave the way for a referendum on EU membership, with a growing likelihood that a vote would take place next year.

Speaking at the CBI's annual dinner on Wednesday night, Sir Mike Rake, the organisation's president, said ‎business chiefs needed to "turn up the volume" by supporting Britain's future in a reformed EU.