One of Mobile’s biggest aerospace companies has announced it plans to shut down local operations in the next few months, “progressively rationalizing” hundreds of jobs.

VT MAE released a statement Wednesday morning saying that it “has made the strategic decision to undertake a capacity transition plan for its operations in Mobile, Alabama.”

“Under this move,” the company explained, “VT MAE will progressively rationalize its Mobile operations and transition its airframe MRO activities to facilities in Pensacola, Florida, and San Antonio, Texas. The process is estimated to take place over the next few months.”

While the euphemistic phrasing did not explicitly state that the company plans a complete shutdown of its Mobile site, a quote from general manager Alvin Bass clarified that somewhat: “We are grateful for the support and successful history we have had in Mobile for more than 30 years, and we deeply value our long-standing relationship with the Mobile community. The difficult decision was made after we had gone through a long and careful consideration of multiple factors and options. … Thank you, Mobile, for the incredible memories and unwavering partnership. Your support has been instrumental to our journey, and we will always hold this community close to our hearts.”

While VT MAE did not provide figures, it appeared that Mobile’s aerospace sector was in line to lose upwards of 500 jobs. In a May 2023 article on the company, Business Alabama reported that the company had 579 full-time employees and had more than 1,000 workers if contractors were included. At the time, it also was planning to hire 200 more full-timers for an expansion that would refit Airbus A320 passenger jets to carry freight.

The city of Mobile’s Annual Comprehensive Financial Report for the fiscal year ending Sept. 30, 2023, listed VT MAE among the city’s principal employers, ranking it ninth with 1,280 employees.

VT MAE specialized in what’s known in the aerospace industry as MRO work, for Maintenance, Repair and Overhaul. Work on aircraft must be done to exacting standards, with extensive certifications required for parts, procedures and workers.

The company’s statement said that the shutdown was driven by industry competition: “In efforts to further optimize its operations and enhance its competitiveness in the global airframe Maintenance, Repair and Overhaul (MRO) market, VT Mobile Aerospace Engineering (VT MAE) has made the strategic decision to undertake a capacity transition plan for its operations in Mobile, Alabama. Under this move, VT MAE will progressively rationalize its Mobile operations and transition its airframe MRO activities to facilities in Pensacola, Florida, and San Antonio, Texas. The process is estimated to take place over the next few months.

“Providing comprehensive support to employees will be a top priority during this transition,” continued the statement. “This includes redeployment opportunities at its other U.S. facilities, as well as outplacement and transition assistance. The company will also work with the local communities including the state, city, landlord and industry partners for a smooth transition.”

Requests for comment from the Mobile Chamber and the Mobile Airport Authority were pending as this story was published.

There’s an irony to the fact that Mobile jobs will be transitioned to Pensacola: Back in 2014, VT MAE signed a deal with the Florida city to lease property there. The planned new facility was described as a “satellite facility” to the Mobile operation, which reportedly employed about 1,500 people at the time.

The rise of Airbus in Mobile was seen as a positive development for VT MAE. One of Airbus’ partner companies, MAAS, built a jetliner painting facility at the Brookley Aeroplex, and partnered with VT MAE to present Mobile as a place where jet owners could have aircraft serviced and repainted.

VT MAE is a subsidiary of Singapore-based ST Engineering. The parent company recently reported achieving record revenue and net profit in 2024 with revenue of $11.3 billion and Group Net Profit that increased 20% year-over-year.

In August 2024, WPMI-TV15 and the Pensacola News-Journal reported that VT MAE had shed up to 300 Chilean workers holding jobs in Pensacola and Mobile. The employees were first notified there was a problem with their visas, then told their jobs and health insurance were being cut. The company disputed the terminology of saying the affected employees had been laid off and said it was a matter of “work authorization expiration.”