Boeing Co.’s manufacturing facility is located in North Charleston, South Carolina, USA on Monday, May 4th, 2020. Boeing is resuming its 787 operations at the plant for the first time since April 8, including all operations ceased due to the Covid-19 pandemic, ABC News reported.
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Boeing On Thursday, the company announced that it plans to consolidate its 787 Dreamliner production at its South Carolina facility next year to cut costs in the face of weak demand, which is a blow to the Seattle area manufacturing center.
Boeing announced in July that it is evaluating the consolidation of its production lines for the wide-body jets, which is currently in Everett, Washington, where the aircraft first began production in 2007, and in North Charleston, South Carolina, a facility where the workforce is absent busy is unionized.
At the time, Boeing said it would further cut back on already scaled-back production plans for the 787, an aircraft that is frequently used on international routes that were harder hit than domestic ones during the year Coronavirus pandemic. In the next year, six 787 aircraft will be manufactured per month, out of ten.
“To ensure we can be effective in a market that will be smaller in the short term and have different needs than our customers over the long term, we decided this morning to consolidate 787 production in South Carolina after months of Stan Deal, CEO of the Boeing airliner unit, wrote in an employee log.
Boeing said mid-2021 is the “best guess” for the start of production consolidation in South Carolina. The company determined that only the North Charleston facility is set up to produce the 787-10, the largest model in the Dreamliner family.
After the announcement, which was expected, Boeing slid from the daily high, but stocks rose about 2% in midday trading.
Boeing announced the second production line for the 787 almost eleven years ago. Consolidation of manufacturing is of paramount importance to Boeing’s employees and the economy surrounding the Seattle manufacturing facilities. According to the latest information, Boeing has around 7,000 employees in South Carolina and almost 70,000 in Washington state.
“Boeing’s decision to move its 787 production out of Washington state is short-sighted and out of place,” said Rep. Rick Larsen, D-Wash., Chairman of an aviation subcommittee for the House of Representatives, whose district has the Everett facility Boeing heard in a statement on Wednesday. “When the economy returns and air traffic returns, I will fight to get 787 production back to Everett.”
The grim aircraft market after two fatal crashes of the best-selling 737 Max sparked a wave of cost reductions. Boeing announced earlier this year that it would reduce its 160,000 employees by 10% and warned against it this summer more cuts Are possible.
The Jets Max, Boeing 767, 777 and 747 are manufactured in the Puget Sound area.
Boeing also plans to stop manufacturing the iconic 747 jetliner, also made in Everett, in 2022.