Boeing may expand South Carolina plant; applies for permits

CHARLESTON, S.C. — Boeing Co. is seeking permits to expand its South Carolina plant, one of several being considered for a second assembly line for its new 787 jetliners, a company spokesman said Wednesday.

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.

Boeing 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 and its best-selling new model to date.

Everett-area leaders say the company’s actions in South Carolina bring new urgency to what Snohomish County Executive Aaron Reardon called a “real and robust” competition for the second 787 line.

“The Boeing Co.’s most recent actions indicate that the company sees North Charleston as a site with tremendous possibilities, and that the company is indeed poised to maximize the plant to its fullest potential,” Reardon said in a prepared statement.

He called on Boeing and its union to “resolve their differences.”

“In the same vein, elected officials across this state must cease their negative rhetoric. Our goal as policy leaders must be clear, and that is to create the most competitive regional and state economic environment for the future of commercial aerospace.”

Production of the 787 has been hampered by problems stemming partly from Boeing’s reliance on global suppliers to build large sections of the aircraft. Those sections are later assembled at Boeing facilities in Everett.

The production glitches and an eight-week strike by union workers last fall have led to repeated delays of the 787’s first test flight and deliveries.

The troubles with the 787 program have cost Boeing credibility and billions of dollars in anticipated expenses and penalties. First deliveries are now about two years behind schedule.

Still, 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 in July from Vought for $580 million plus about $420 million in debt forgiveness, makes fuselage sections for the 787. Analysts saw the acquisition of the plant, which was built in 2005, as an effort by Boeing to exert greater control over the production process and resolve supplier problems.

Because of the lead time required to get building permits, the company may also seek them for other locations, Young said. Boeing has declined to specify other sites being considered.

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 suitable for a facility like this and how much time that will take is part of the work to be done,” he said.

Everett Mayor Ray Stephanson said in a prepared statement that the Everett area meets all of Boeing’s needs.

“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 work force,” he said.

In South Carolina, U.S. Rep. Henry Brown, a Republican, 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 work force,” he said.

Shares of Boeing dipped 43 cents to close at $47.82 Wednesday