Published: Wednesday, August 26, 2009
Boeing may expand S.C. plant for 787 production
CHARLESTON, S.C. — Boeing Co. is seeking permits to expand its South Carolina plant, one of several being considered for an assembly line for its new 787 wide-body jetliners, a company spokesman said today.
Boeing spokesman Russ Young said the company is notifying state and local officials about applying for permits at the North Charleston plant, but noted there will be no decision on where to locate a second line until year's end.
The Chicago-based company has been evaluating potential sites for a second assembly line for the 787, a next-generation aircraft built for fuel efficiency with lightweight carbon composite parts.
Production of the plane — its best-selling new model to date — has been hampered by problems that have contributed to repeated delays of its first test flight and deliveries.
But the 787 remains a priority for Boeing, which has struggled with sharply lower orders as the global economic slowdown has eroded demand for air travel and cargo services.
The North Charleston plant, which Boeing bought last month from Vought for $580 million plus about $420 million in debt forgiveness, makes fuselage sections for the 787. It was built in 2005.
Because of the lead time required to get building permits, the company may also seek them for other locations, Young said. The long-range aircraft, which is about two years behind schedule, is currently being assembled at the company's Everett plant.
Young said people should not read too much into the decision to seek the South Carolina permits.
“Understand this is a procedural step. It certainly recognizes Charleston is a candidate as is Everett, Wash., and other locations,” he said.
The company plans to have the new assembly line operating by 2012, Young said.
Young said the announcement makes it easier for Boeing officials to work on getting the permits without having to be secretive about the process as might be the case with other industrial developments.
“There's a lot of work to be done and it's best done with a clear understanding of what we are doing and why,” he said.
“In this case there is an existing site, but how much work is required to make it potentially make it suitable for a facility like this and how much time that will take is part of the work to be done,” he said.
U.S. Rep. Henry Brown, R-S.C., called the development good news for the Charleston area.
“The potential for increasing Boeing's presence in our state is a massive vote of confidence in the quality of the South Carolina workforce,” he said.
Washington U.S. Sens. Maria Cantwell and Patty Murray, both Democrats, said the state has been home to Boeing since 1916.
“Our commitment to keeping Boeing in Washington has never wavered and never will,” a joint statement said, adding, “The second line belongs in Washington state.”
Everett Mayor Ray Stephanson released a statement saying: "Keeping the Boeing Co. and keeping the Boeing community together in Everett and Washington state is my highest priority.
"Boeing efforts to expand capacity can be easily met in existing facilities in Everett. You don’t need to apply for permits in Everett, there is significant capacity within the existing Everett assembly plant to accommodate additional lines including the facilities, and an experienced, skilled workforce. In addition, all the necessary infrastructure, roads, and utilities are in place.
“Moreover, Washington state and Everett offer a reliable network of established suppliers and subcontractors that form an extended, stable Boeing family. That culture produces a seasoned, quality workmanship that is, and will continue to be, unmatched.”
U.S. Rep. Dave Reichert, R-Wash., said the news “makes clear the need for increased urgency and determination in our fight to keep Boeing here in Washington State.”
Shares of Boeing dipped 44 cents to $47.81 in afternoon trading.
Boeing spokesman Russ Young said the company is notifying state and local officials about applying for permits at the North Charleston plant, but noted there will be no decision on where to locate a second line until year's end.
The Chicago-based company has been evaluating potential sites for a second assembly line for the 787, a next-generation aircraft built for fuel efficiency with lightweight carbon composite parts.
Production of the plane — its best-selling new model to date — has been hampered by problems that have contributed to repeated delays of its first test flight and deliveries.
But the 787 remains a priority for Boeing, which has struggled with sharply lower orders as the global economic slowdown has eroded demand for air travel and cargo services.
The North Charleston plant, which Boeing bought last month from Vought for $580 million plus about $420 million in debt forgiveness, makes fuselage sections for the 787. It was built in 2005.
Because of the lead time required to get building permits, the company may also seek them for other locations, Young said. The long-range aircraft, which is about two years behind schedule, is currently being assembled at the company's Everett plant.
Young said people should not read too much into the decision to seek the South Carolina permits.
“Understand this is a procedural step. It certainly recognizes Charleston is a candidate as is Everett, Wash., and other locations,” he said.
The company plans to have the new assembly line operating by 2012, Young said.
Young said the announcement makes it easier for Boeing officials to work on getting the permits without having to be secretive about the process as might be the case with other industrial developments.
“There's a lot of work to be done and it's best done with a clear understanding of what we are doing and why,” he said.
“In this case there is an existing site, but how much work is required to make it potentially make it suitable for a facility like this and how much time that will take is part of the work to be done,” he said.
U.S. Rep. Henry Brown, R-S.C., called the development good news for the Charleston area.
“The potential for increasing Boeing's presence in our state is a massive vote of confidence in the quality of the South Carolina workforce,” he said.
Washington U.S. Sens. Maria Cantwell and Patty Murray, both Democrats, said the state has been home to Boeing since 1916.
“Our commitment to keeping Boeing in Washington has never wavered and never will,” a joint statement said, adding, “The second line belongs in Washington state.”
Everett Mayor Ray Stephanson released a statement saying: "Keeping the Boeing Co. and keeping the Boeing community together in Everett and Washington state is my highest priority.
"Boeing efforts to expand capacity can be easily met in existing facilities in Everett. You don’t need to apply for permits in Everett, there is significant capacity within the existing Everett assembly plant to accommodate additional lines including the facilities, and an experienced, skilled workforce. In addition, all the necessary infrastructure, roads, and utilities are in place.
“Moreover, Washington state and Everett offer a reliable network of established suppliers and subcontractors that form an extended, stable Boeing family. That culture produces a seasoned, quality workmanship that is, and will continue to be, unmatched.”
U.S. Rep. Dave Reichert, R-Wash., said the news “makes clear the need for increased urgency and determination in our fight to keep Boeing here in Washington State.”
Shares of Boeing dipped 44 cents to $47.81 in afternoon trading.
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