Defense Budget Reductions, Limited Opportunities For New Work
And Competitive Cost Structure Driving Need To Close Facility
Boeing said Wednesday that the Boeing Defense, Space &
Security (BDS) facility in Wichita will close by the end of 2013.
The Wichita facility currently employs more than 2,160 people.
"The decision to close our Wichita facility was difficult but
ultimately was based on a thorough study of the current and future
market environment and our ability to remain competitive while
meeting our customers' needs with the best and most affordable
solutions," said Mark Bass, vice president and general manager for
BDS' Maintenance, Modifications & Upgrades division. "We
recognize how this will affect the lives of the highly skilled men
and women who work here, so we will do everything possible to
assist our employees, their families and our community through this
difficult transition."
Boeing Wichita is the base for the company's Global Transport
& Executive Systems business and its B-52 and 767 International
Tanker programs. The facility also provides support for flight
mission planning and integrated logistics. Over the past five
years, contracts in Wichita have matured, programs have come to a
close or are winding down, and the site does not have enough
sustainable business on the horizon to create an affordable cost
structure to maintain and win new business.
"In this time of defense budget reductions, as well as shifting
customer priorities, Boeing has decided to close its operations in
Wichita to reduce costs, increase efficiencies, and drive
competitiveness," said Bass. "We will begin program transitions in
the coming months, with the complete closure of the site scheduled
for the end of 2013. We do not anticipate job reductions as a
result of this decision until early in the third quarter of
2012."
Bass said that Boeing will continue to have a significant impact
on the Kansas economy and the health of the state's aerospace
industry. "The company spent more than $3.2 billion with
approximately 475 Kansas suppliers in 2011, spanning its commercial
and defense businesses, making it the fourth largest state in
Boeing's supplier network," said Bass. "Based on Boeing Commercial
Airplanes growth projections for the next few years, Boeing
anticipates even more growth for suppliers in Kansas. Boeing values
its long-term partnership with Kansas, and we will continue to work
with all of our stakeholders in Kansas in support of a robust
aerospace industry in the state."
Future aircraft maintenance, modification and support work will
be placed at the Boeing facility in San Antonio. Engineering work
will be placed at the Boeing facility in Oklahoma City. Although
work on the KC-46 tanker will now be performed in Puget Sound,
Wash., the 24 Kansas suppliers on the program will be providing
vital elements of the aircraft as originally planned.
Boeing is providing employee assistance including retirement
seminars, job search resources, and financial counseling, as well
as help finding jobs inside or out of Boeing.
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