Boeing begins work on new 787 plant

Work has started on building Boeing's $750 million aircraft assembly plant in South Carolina — the largest industrial investment in state history. Multiple media outlets reported that ceremonial shovels full of dirt were scooped Friday at the site near the Charleston International Airport, where Boeing will assemble its 787 jetliners. The company last month chose North Charleston over Everett for the second 787 production line, but Boeing's commercial airplane division president, Jim Albaugh, says the production line should still provide more jobs to Washington, too. The South Carolina plant is expected to create 3,800 jobs within seven years and construction will mean another 2,000 jobs.

Shippers to raise rates for 2010

UPS Inc., the world's largest shipping carrier, is hiking 2010 rates for ground packages by an average of 4.9 percent. The company, based in Atlanta, said Friday there also will be an average net rate increase of 4.9 percent next year on all air express and U.S. origin international shipments. The rate increase for air express and international shipments is based on a 6.9 percent increase in the base rate, less a 2 percent reduction in the air and international fuel surcharge index. Also, fuel surcharge tables for air express and ground services will be adjusted. UPS said the changes will better align air and ground fuel surcharges and will substantially reduce the volatility of air surcharges when fuel prices fluctuate. The new rates take effect on Jan. 4. Rival FedEx Corp., based in Memphis, Tenn., said in September that it will raise express shipping rates an average of 5.9 percent in January.

JP Morgan drops binding arbitration

JPMorgan Chase & Co. said Friday it is dropping a clause from its credit card contracts that required disputes with customers to be handled through binding arbitration, a move that could lead to consumers filing class-action and other lawsuits. A spokesman for the New York-based bank's Chase Card Services unit confirmed the change after a law firm that sued banks over arbitration clauses announced a tentative settlement with JPMorgan Chase. Chase decided to stop sending credit-card disputes to arbitration in July, and now will remove the arbitration clause, officials said.

Hershey may bid to buy rival Cadbury

The Wall Street Journal reports that Hershey Co. may make a $17 billion competing bid for UK candy company Cadbury. The newspaper says the bid wouldn't be ready for two weeks and terms “are in flux,” but it could top the $16.5 billion offer by Kraft Foods Inc. The Journal said people familiar with the offer say the charitable trust that controls Hershey Co. is prodding CEO David West to beat Kraft's offer and that Hershey could offer $10 billion itself plus $2 billion in new Hershey shares and $3 billion to $5 billion from investors.

From Herald news services