Comes Weeks After Expansion Announcement

ANN REALTIME REPORTING 08.18.06 1555 EDT: Aero-News has learned that in a move company officials say is expected to be temporary, San Antonio, TX-based jet maker Sino-Swearingen handed about 100 employees their walking papers Friday.

The layoffs primarily affect mechanics earning between $15 and $20 an hour, officials told San Antonio's KSAT-12. 

News of the layoffs comes several weeks after Sino Swearingen announced plans to construct a new manufacturing facility at its San Antonio International Airport site, and hire as many as 850 new workers over the next 10 years.

Officials said Friday's layoffs are due to production problems with its SJ30-2 business jet -- specifically, issues dealing with the company's transition to mass-production.

Company officials added the layoffs will not affect the company's future production plans.

This isn't the first indication of trouble for the Taiwanese-American joint venture. As Aero-News reported, a Taiwanese lawmaker called for the company's shutdown unless Sino-Swearingen could secure additional outside funding. Taiwan's government is the majority shareholder in the company.

The SJ30-2 received FAA certification last November.

FMI: www.sj30jet.com