October 28, 2009 in News, Business

Boeing will build second 787 line in S.C.

Associated Press

Associated Press photo

Boeing employees work on an aft fuselage for the 787 Dreamliner inside the North Charleston, S.C., facility Wednesday, Oct. 28, 2009. Boeing officials said Wednesday that it would open a second assembly plant in North Charleston for the model.
(Full-size photo)(All photos)

Boeing Co. said Wednesday it will open a second assembly line for its long-delayed 787 jetliner in South Carolina, expanding beyond its longtime manufacturing base in Washington state.

The Chicago-based airplane maker said it chose North Charleston over Everett because the location worked best as the company boosts production of the mid-size jet, designed to carry up to 250 passengers.

Boeing already operates a factory in North Charleston that makes 787 parts and owns a 50-percent stake in another plant there that also makes sections of the plane.

For years, Boeing has discussed the possibility of expanding production of the 787 to meet demand for the plane, its best-selling new aircraft to date. About 55 airlines have ordered some 840 of the planes since the program was launched in 2003 — far more than any other Boeing plane at the same stage of development.

“Establishing a second 787 assembly line in Charleston will expand our production capability to meet the market demand,” Jim Albaugh, president and CEO of Boeing’s commercial airplane division, said in a statement.

Boeing hasn’t indicated how long it will take to get the second assembly line up and running, but the company says it hopes to produce 10 of the planes per month by 2013. It currently makes about 31 of its smaller 737s per month and seven of its popular 777s per month.

The decision allows Boeing to build on relationships the company has established in South Carolina, strengthen its competitiveness and sustainability, and help it grow in the long term, he said.

Everett is the site of Boeing’s commercial aircraft division, where the company has assembled early versions of the 787.

The first flight and deliveries of the high-tech aircraft have been postponed repeatedly due to manufacturing glitches and a labor strike. A walkout by union machinists late last year forced the company to shut its commercial plane operations for eight weeks. Labor relations were considered key to Washington state’s bid to keep 787 production in the state.

Besides South Carolina, states initially seen as competitors to Washington included North Carolina, Kansas, Texas and California. But Boeing said last week it had narrowed the choices to Washington and South Carolina.

The news came shortly after South Carolina legislators approved an economic incentive package believed to be tailored to lure the Boeing assembly plant to the state. The incentive package would allow lawmakers to guarantee tax breaks and low-interest loans for an unidentified economic development prospect.

After Boeing announced its decision, the typically staid South Carolina Senate chamber broke out in cheers and legislators put on palmetto tree pins with wings, merging the state’s symbol with its biggest economic development announcement on record.

Gov. Mark Sanford called it a “monumental” investment that will spur the state’s already-growing aerospace hub.

Boeing claims the 787, made of lighter-weight materials, will be more efficient, quieter and have lower emissions than other airplanes. The plane will include wider seats and aisles, larger windows and a ventilation system meant to allow for higher humidity. Those features, Boeing says, will make the cabin more comfortable.

Unlike Boeing’s other commercial jets, the 787 will be built mostly from lightweight carbon composite parts instead of aluminum. Boeing has relied on overseas suppliers to build huge sections of the plane that are later assembled in Everett.

That approach so far has proved problematic. Ill-fitting parts and other glitches have hampered production, and Boeing has postponed the plane’s inaugural test flight and deliveries five times, putting it more than two years behind schedule. Boeing reiterated last week that it plans to fly the 787 for the first time by the end of the year.

The delays have cost Boeing credibility and billions of dollars in anticipated costs and penalties.

Shares of Boeing rose $1.02, or about 2 percent, to $48.24 in after-hours trading. During the regular session, they slid 53 cents, or about 1 percent, to $47.22.

14 comments on this story so far. Add yours!

Orange on October 28 at 2:07 p.m.
Another American company being buried by the Unions
zelda on October 28 at 2:33 p.m.
It’s done. Boeing picked S.C. Announcement came out about 20 minutes ago.
Rifleman__Dodd on October 28 at 3:04 p.m.
If I was the average $14/hr worker in S.C. I would wait till Boeing moves to S.C. and then unionize/strike to get the $24/hr wage of the IAM. Albeit they still wont know how to build an airplane.
Much like any other passenger prior to booking a ticket, my first question will be. Was that plane built in Seattle or Charlotte?
zelda on October 28 at 3:13 p.m.
Any effect on Triumph Composite Systems? Don’t know how they figure into the whole Boeing supply chain anymore or the 787 in particular. It would be nice to see the S-R address the local angle, if there is one.
Bob_Knows on October 28 at 3:37 p.m.
The US is lucky Boeing didn’t just move the whole thing to China. The CEO is still angry about a recent strike.
Unions broke GM and Chrysler. Boeing doesn’t want to go down under union destruction.
Al_Loysius on October 28 at 3:50 p.m.
Whomever runs against Gov. Gregoire in 2012, whether it be a Dem. primary challenger or a Republican in the general, will paint her as “the Governor who lost Boeing for Washington.” Dems up and down the ballot are going to be hurt. They are going to get blamed for high corporate taxes, high worker comp. rates and “green” legislation that convinces business to go elsewhere.
Just look at how many businesses have either moved out of Spokane County and moved to Post Falls/CDA or have gone straight there like Cabela’s.
Boeing already moved its corporate HQ to Chicago. I suspect that Boeing will start moving more and more of its assets to other states in the future.
Rifleman__Dodd on October 28 at 4:01 p.m.
uh Bob.. they already farmed out enough of the sub assemblies to China that China is now building their pwn airplanes. Dont fool yourself Boeing management is out to kill Boeing.
westside on October 28 at 5:37 p.m.
Union leadership is still going by old 1960’s mentality, STRIKE! We want more!! We want $70,000 a year in base wages!! We want!! We get!!! Well..in 10 years Boeing will be out of Wa State…Union leadership is corrupt, immoral, greedy, arrogant in today’s economic depression!
westside on October 28 at 6:23 p.m.
A few years ago EZ Loader Boat Trailers moved their corporate headquarters to Port St. Lucie Florida, it was in Spokane for 55 years!! Too many taxes from Queen Christine! They employ 150 people in Spokane…
hidamaruathotmail on October 28 at 6:26 p.m.
ROFL @ Washington State, only a lefty oligarchy like the one you all have allowed to power would let one of the nation’s few remaining manufacturing/ assembly companies slip away to a redneck state.
Would this ever happen in a state with at least one senator or goveroner that is not wholly in the bag for any leftist cause? How much more ineffective could our state officials and congressional/senatorial representation be at this point?
southie4573 on October 28 at 6:56 p.m.
I am not sure why your are blaming the Gov. if that is your logic than we should give her credit for WA state having microsoft, amazon.com on and on. Boeing was moving out of WA state for years!
I am surprised it took this long.
Rifleman__Dodd on October 28 at 8:10 p.m.
uh southie Bill Gates is from Seattle. He didnt MOVE here. He was here already, the same for Starbucks and Amazon.
Yep we have the most incompetent, brazen lying Senators/Governor.. you all well know they are in the Boeing bag and they got snookered like everyone else. Gary Locke is the school book example of giving away $6 Billion for the 777 production line at Everett and then they moved their Headquarters to Chicago to get away from the Union Picket lines. You would think Gregoire/Murray/Cantwell would learn. They were too busy futzing around with stupid stuff and let their eye off the ball.
and.. the union fought the job exports tooth and nail. Dont blame them for wanting a living wage after working 30 years.
Blame the Management because its THEIR job to manage and not mis-manage. Blame our elected leadership for not nipping this in the bud.
Someone please cue in the music of Dueling Banjo’s…
flutieflakes on October 28 at 8:55 p.m.
Dey took er jerbs!
hidamaruhotmail on October 29 at 3:54 p.m.
Southie,
I’m glad that someone showed themselves as a perfect example of how critical thinking is not valued in our education.
As another poster said, if you are an executive and feel that one of your blue-ribbon major clients are about to leave, you nip that right in the bud, come what may. You want those jobs in your building and they are not to leave under any circumstances.
Or, just keep voting for the useless cabal or senators and goveroner. Which you will, blindly.