Boeing will consolidate Dreamliner manufacturing in South Carolina as demand drops
Sam Wolfe | Bloomberg | Getty Photos
Boeing in July stated it might consider consolidating manufacturing strains for the widebody jets, which it at present has in each Everett, Washington, the place it first began producing the planes in 2007, and North Charleston, South Carolina, a plant the place the workforce is not unionized.
At the moment, Boeing stated it might additional reduce already-reduced manufacturing plans for the 787, a airplane used usually on worldwide routes, which have been extra affected than home ones through the coronavirus pandemic. It should make six 787 planes per thirty days subsequent yr, down from 10.
“To make sure we might be efficient in a market that will probably be smaller within the near-term, and one that may have totally different calls for from our prospects long-term, we decided earlier this morning to consolidate 787 manufacturing in South Carolina after months of detailed and thorough examine,” Stan Deal, CEO of Boeing’s industrial airplane unit, wrote in an worker memo.
Boeing stated mid-2021 was its “greatest estimate” for the beginning of the manufacturing consolidation in South Carolina. The corporate famous that solely the North Charleston facility is ready as much as produce the 787-10, the biggest mannequin within the Dreamliner household.
After the announcement, which was anticipated, Boeing’s inventory slipped from the day’s highs and was up lower than 1% in afternoon buying and selling.
Boeing introduced the second manufacturing line for the 787 practically 11 years in the past, and consolidating manufacturing there may be the most recent ache for Boeing’s employees and the economic system round its Seattle-area manufacturing amenities. Boeing employs about 7,000 individuals in South Carolina and near 70,000 in Washington state, in response to its most up-to-date counts.
“Boeing’s choice to drag its 787 manufacturing out of Washington state is shortsighted and misplaced,” Rep. Rick Larsen, D-Wash., chairman of a Home subcommittee on aviation and whose district consists of Boeing’s Everett plant, stated in an announcement on Wednesday. “Because the economic system comes again and air journey returns, I’ll battle to convey 787 manufacturing again to Everett.”
The dismal plane market on prime of the aftermath of two deadly crashes of its bestselling 737 Max prompted a wave of cost-cutting. Boeing earlier this yr stated it deliberate to cut back its 160,000-person workforce by 10%, warning this summer time that additional cuts are doable.
The Max, Boeing 767, 777 and 747 jets are made within the Puget Sound space of Washington state.
Boeing additionally plans to cease making the long-lasting 747 jetliner, which can also be produced in Everett, in 2022.