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Tue, Sep 07, 2004

You Again?

GKN PLC Reportedly Interested In Boeing Plants (Again)

Wait just a minute. Didn't these guys already say, "Thanks, but no thanks"?

It was back in May that we reported GKN PLC had walked away from a deal with Boeing to purchase the latter's plants in Oklahoma and Wichita (KS). Now, however, GKN is sniffing around at the deal again, according to published reports.

Back in May, a deal between the two companies, which already have a pretty tight relationship, would have involved Boeing's plants in Wichita, Tulsa and McAlester (OK).

Boeing is reportedly focusing on a business plan that centers on design and final assembly (witness all the outsourcing on the 7E7 project). Selling those three commercial plants would be in line with that philosophy.

There's no indication what sorts of numbers might be involved here. But as Boeing courts GKN again, employees at those three plants are wondering what will happen to their jobs. In May, Boeing sent out a letter to the employees, saying in part, "There is no set timetable for completing this part of our study, but we do expect it to be a slow process."

FMI: www.boeing.com

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