Aircraft firm sold for £2.4bn

The firm is being swallowed up by US conglomerate General Electric, ending 72 years of British ownership. It is only the second time the Pendeford factory has changed hands.

It was originally run by Boulton Paul Aircraft, who brought 600 workers and their families from the company's original home in Norfolk when it moved on to the site on Wobaston Road in 1934.

The company was bought by Dowty in 1961, which later became part of the TI Group, before the site became Smiths Aircraft Actuation Systems in 2001.

The sale has created uncertainty for Smiths Aerospace workers, who are among 11,000 employed by the company worldwide.

Smiths parts are installed on a wide range of military and commercial aircraft, including the Boeing 737 and Airbus A320.

The Wolverhampton factory has been working on major new projects including the Boeing 787 and the F-35 Joint Strike Fighter.

Although Smiths Aerospace hit sales of around £1.2 billion last year at a time of strong growth in the industry, it has been hit by the rising cost of developing new aircraft components.

The new owners have not talked about the prospects for jobs at Wolverhampton or any of the other Smiths Aerospace sites.

But GE chairman and chief executive Jeff Immelt said his company's aviation arm was growing at about 10 per cent a year. GE is the world's second biggest company, with businesses ranging from building jet engines to commercial finance to NBC Universal media.

Mr Immelt said: "Smiths Aerospace is a world-class business and a great extension of our aviation business."

Smiths said it would now concentrate on its medical equipment and speciality engineering businesses.

By Simon Penfold