Long Beach C-17 Plant to Close in 2009

0

Citing a lack of U.S. and international orders for its C-17 jet, Boeing Co. said Friday that it expects to close the Long Beach plant that builds the military cargo jet in 2009, with layoffs beginning next year.


Boeing also said Friday that it immediately plans to stop procuring parts for the jet, despite efforts by California lawmakers to continue production at the facility and have the Department of Defense reconsider its decision to halt new orders.


Boeing is currently under contract to build 190 C-17s for the U.S. Air Force, but based on the 34 months necessary to build a C-17, the company said it needs an immediate commitment for new orders to avoid a break in production.

“We had hoped to keep the production line active and viable to protect this important national asset affordably while the U.S. government completed its decision process,” said Dave Bowman, vice president and C-17 program manager.


Chicago-based Boeing noted the Department of Defense did not request funding for new C-17s in its fiscal year 2007-2008 budget and expected international orders have not materialized.


The announcement by Boeing comes despite efforts by the state’s Congressional delegation to keep the plant open. The Long Beach facility, one of the state’s largest manufacturing plants, employs about 5,700 people and contributes $3.7 billion to the California economy.


Gov. Arnold Schwarzenegger released a letter Thursday sent to California lawmakers in anticipation of Boeing’s announcement.


“As the United States enters its sixth year of fighting terrorism around the world, military experts will tell you that the C-17 has proven to be the military’s true workhorse,” Schwarzenegger said in the letter. “Discontinuing this aircraft will strain our military’s airlift capacity and seriously jeopardize our national security, at a time when we can least afford such an action.”


The line will remain open until August of 2009 while manufacturing is completed on the last 22 aircraft it has under contract, Boeing said.


In all, more than 7,000 employees will be affected in California, Missouri, Georgia, and Arizona, along with 700 companies in 42 states that provide parts and services to the $220 million jet.

No posts to display