Alfor Aviation to establish UK HQ at Teesside Airport in £50m investment

Aircraft conversion company Alfor Aviation is to establish its global headquarters at Teesside Airport under a £50 million investment that is expected to create 250 jobs.

The aerospace engineering company, which converts passenger airliners to freighters, has signed a 50-year agreement with the airport to develop a purpose-built facility.

The move, announced on the third day of the Farnborough International Airshow 2026, strengthens Teesside’s ambitions to become a major centre within the UK for aerospace manufacturing and air cargo.

New aircraft conversion campus planned at Teesside

The development will include new hangars, engineering workshops and warehousing, with construction due to begin soon. 

The site is scheduled to enter service by the end of 2027 and, once fully operational, will be capable of converting up to 24 aircraft a year.

As well as housing conversion activities, the campus will become Alfor’s global headquarters, bringing together its engineering, executive, logistics and support teams.

The investment represents one of the largest commitments to the UK’s passenger-to-freighter (P2F) conversion sector in recent years and follows the company’s appearance at the Farnborough International Airshow, where it unveiled a new conversion concept designed to simplify the process of turning passenger aircraft into freighters.

New conversion technology at Farnborough Airshow

Unlike conventional P2F modifications, which require a large cargo door to be cut into the aircraft’s fuselage, Alfor’s Internal Loading System (ILS) is intended to allow cargo aircraft to be created without major structural changes.

The company believes the approach could reduce conversion costs by almost 40% while shortening the time aircraft spend in the hangar.

With demand for P2F conversions growing, Alfor said the ILS would offer airlines and lessors a lower-cost option.

Freeport status influenced decision

Alfor, which was established in 2023 through a partnership between Turkish industrial group Alarko and British aviation specialists Foravia, said it assessed several potential locations across Europe before selecting Teesside.

A key factor was the airport’s location within Teesside Freeport, which offers tax and customs incentives alongside access to road, rail, sea and air freight networks. 

The company, which is currently headquartered in Bournemouth, also cited the region’s engineering base, skilled workforce and long-term growth potential.

Chief executive Omer Mafa described the move as a “transformational moment” for the business and said the company intended to build one of the world’s leading aircraft conversion operations from its new North East base.

“We examined numerous locations across Europe for our long-term home, but nowhere matched what Teesside offers. The region is booming, its industrial heritage is being matched by an exciting modern vision for advanced manufacturing, and the opportunities for long-term growth are exceptional,” Mafa added. 

Boost for North East aerospace

Phil Forster, managing director at Teesside International Airport, said: “This is a landmark investment for Teesside Airport and another major endorsement of the ambitious growth strategy we have been delivering over recent years. 

“By bringing its unique technology to Teesside, Alfor will establish the airport as a centre of excellence for air freight innovation.

“The combination of our land availability, Freeport status, excellent connectivity and skilled workforce is creating opportunities that are benefiting not only the airport itself, but the wider Tees Valley economy. We are proud to welcome Alfor Aviation and look forward to supporting its growth over the decades ahead.”