Accelerates Productivity And Efficiency Within 787 Supply
Chain
Bringing an end to weeks of
speculation, Boeing announced Tuesday that it has
agreed to acquire the business and operations conducted by Vought
Aircraft Industries at its South Carolina facility, where Vought
builds a key structure for Boeing's 787 Dreamliner airplane.
The Vought facility, located in North Charleston, performs
fabrication and assembly of structures and systems installation of
787 aft fuselage sections, which are made primarily of composite
materials. After the transaction, Vought will continue its work on
many Boeing programs, including other components of the 787, as
well as structures and components on the 737, 747, 767, 777, C-17
and V-22 through operations located elsewhere.
"Integrating this facility and its talented employees into
Boeing will strengthen the 787 program by enabling us to accelerate
productivity and efficiency improvements as we move toward
production ramp-up," said Scott Carson, president and CEO of Boeing
Commercial Airplanes. "In addition, it will bolster our capability
to develop and produce large composite structures that will
contribute to the advancement of this critical technology."
"We take great pride knowing that we have been able to satisfy
the technological and physical demands of the 787 program alongside
much larger companies," said Elmer Doty, president and CEO of
Vought Aircraft Industries. "However, the financial demands of this
program are clearly growing beyond what a company our size can
support. We are pleased that we will continue our 787 involvement
at a component manufacturing level, as well as provide ongoing
technical capabilities that have helped make Charleston a
world-class composite facility."
Through the agreement, Boeing will acquire the North Charleston
facility, its assets and inventory and will assume operation of the
site, and the parties will resolve all matters related to Vought's
prior work on the 787 program. The cash consideration to be paid to
Vought at closing is approximately $580 million. In addition,
Boeing will release Vought from its obligations to repay amounts
previously advanced by Boeing. Separately, Boeing entered into new
agreements with Vought for work packages on the 737, 777 and
787.
ANN previously reported Boeing had been
experiencing difficulties with it's long supply chain for the
Dreamliner. It had been exploring a more de-centralized
manufacturing plan with final assembly at the main facility in
Seattle. The Vaught facility manufactured the fuselage sections
that have caused the latest Dreamliner delay.
Once acquired, the North Charleston facility will be managed by
the 787 program. "We look forward to welcoming the South Carolina
team to Boeing and continuing our relationship with Vought to bring
the most value to the 787 and our other programs," said Carson.