Boeing Counts on 10 C-17 Orders

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Boeing Co. has told C-17 parts suppliers to restart production in anticipation of selling 10 more planes to the U.S. Air Force.


The Chicago-based defense and government contractor said it would pay for components for 10 additional jets out of its own pockets in hopes that Congress will provide funding to the Air Force, the company said in a news conference Wednesday at the Paris Air Show.


Boeing told its supply chain, which encompasses hundreds of companies and indirectly or directly affects more than 7,000 workers, to stop work back in March because the Air Force has not added to its initial order of 190 jets.


Boeing added that it would start cutting jobs related to production of the cargo jet starting in 2008. The lead-time required to order parts and complete one C-17 is nearly two years. Without more orders the plant would begin closing in 2009 a deadline that has been pushed back to mid-2010 in anticipation of the 10 additional jets.


The Long Beach facility is one of the state’s largest manufacturing plants and employs about 5,700 people, contributing $3.7 billion to the California economy. In all, workers in California, Missouri, Georgia and Arizona, along with 700 companies in 42 states, provide parts and services to build the $220 million jet.

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