The Boeing Company will consolidate production of 787 jets at its facility in North Charleston, S.C., starting in mid-2021, to remediate the effects of COVID-19. The decision will preserve liquidity and reposition of business and enhance efficiency of performance, Boeing reported on Thursday.
"The Boeing 787 is the tremendous success it is today thanks to our great teammates in Everett. They helped give birth to an airplane that changed how airlines and passengers want to fly. As our customers manage through the unprecedented global pandemic, to ensure the long-term success of the 787 program, we are consolidating 787 production in South Carolina," said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes.
Boeing’s production system has been adjusted to accommodate the changing market environment, while the company prepares to boost production as air travel increases. Production of the smaller 787 models will continue in Everett until the program transitions to the previously-announced production rate of six airplanes a month in 2021.
In July, Boeing announced an in-depth study into the feasibility of producing 787s at a single location. The review examined the impacts and benefits to Boeing customers, suppliers, employees and the overall health of the production system.
Boeing’s study is part of an enterprise review to reassess all aspects of Boeing's facility footprint, organizational structure, portfolio and investment mix and supply chain health and stability. The analysis confirmed the efficiency gains created by consolidation, which will enable the company to make improvements and target investments.
"We recognize that production decisions can impact our teammates, industry and our community partners," said Deal. "We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane's value proposition."
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