( AFP ) - The weak dollar is a threat to hundreds of thousands of aerospace and defence industry jobs in Europe, the main association representing the sector warned Monday.
In a statement released after a meeting in Brussels, the Aerospace and Defence Industries Association of Europe (ASD) called for dialogue to try to resolve what it described as a "desperate situation."
"The continuing weakness of the dollar will inevitably lead to a massive relocation of aerospace production capabilities as well as technology centres to US dollar priced locations, where labour costs are approximately 30 to 40 percent lower than in the eurozone," it said.
The ASD said the "competitive advantages for industry based in US dollar economies and this 'necessary step' of relocation could threaten the future of the more than 640,000 highly skilled workers and engineers currently employed by European aerospace and defence companies.
"The sector seeks dialogue with authorities to find remedies to solve this desperate situation, which is becoming increasingly critical for Europe's aerospace and defence companies," a statement said.
The dollar slid on Monday against the European single currency in cautious trade ahead of key economic data and earnings news in the United States, dealers said.
The euro rose to 1.5885 dollars from 1.5814 late Friday in New York.
The ASD's council is formed by, among others, the chiefs of Airbus, Britain's BAE, Italy's Fincantieri, Thales of France and Germany's Diehl and Rheinmetall.