Boeing Selects North Charleston for 2nd 787 final assembly line

Boeing has pulled the trigger and announced that they will locate the second production line for the 787 in North Charleston, SC.

The talks with IAM has not resulted in an agreement and thus Boeing, in order to meet its contractual obligations to its customers will locate the line outside of Everett. It's important to note that this will create jobs in SC but not lead to a reduction of the workforce in Everett....for now. This decision does not come as a surprise to me and does represent a set back for the two main unions in the Washington area, IAM and SPEEA.

Boeing to Place Second 787 Assembly Line in North Charleston, SC

SEATTLE, Oct. 28 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA) today announced that it has chosen its North Charleston, S.C., facility as the location for a second final assembly site for the 787 Dreamliner program. Boeing evaluated criteria that were designed to find the final assembly location within the company that would best support the 787 business plan as the program increases production rates. In addition to serving as a location for final assembly of 787 Dreamliners, the facility also will have the capability to support the testing and delivery of the airplanes.

"Establishing a second 787 assembly line in Charleston will expand our production capability to meet the market demand for the airplane," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. "This decision allows us to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica," he said, adding that this move will strengthen the company's competitiveness and sustainability and help it grow for the long term.

Boeing Charleston performs fabrication, assembly and systems installation for the 787 aft fuselage sections. Across the street, Global Aeronautica, which is 50 percent owned by Boeing, is responsible for joining and integrating 787 fuselage sections from other structural partners.

Until the second 787 assembly line is brought on line in North Charleston, Boeing will establish transitional surge capability at its Everett, Wash., location to ensure the successful introduction of the 787-9, the first derivative model of the 787. When the second line in Charleston is up and operating, the surge capability in Everett will be phased out.

"We're taking prudent steps to protect the interests of our customers as we introduce the 787-9 and ramp up overall production to 10 twin-aisle 787 jets per month," said Albaugh.

"While we welcome the development of this expanded capability at Boeing Charleston, the Puget Sound region is the headquarters of Boeing Commercial Airplanes. Everett will continue to design and produce airplanes, including the 787, and there is tremendous opportunity for our current and future products here," Albaugh emphasized. "We remain committed to Puget Sound."

Approximately 55 airlines have ordered around 840 787 airplanes since the program was launched in 2003. The 787 family of airplanes will carry 200 to 250 passengers on flights up to 8,200 nautical miles (15,200 km). The 787 will be more efficient, quieter and have lower emissions than other airplanes while offering passengers greater comfort and the convenience of direct, nonstop flights between more cities around the world.

"The 787 will provide airlines with unprecedented operating economics and efficiencies. It also will take passengers where they want to go, when they want to go, and do it more comfortably and affordably than ever before," Albaugh said. "This airplane will allow us to continue to set the standard for commercial aviation in the second century of flight."

What is interesting is that Everett will be the location of a temporary surge production of the 787-9 until the Charleston facility is up and running. This indicates that the 787-9 production will be located in Charleston but that Everett will handle some of the inital 787-9 production.

The new Charletson facility will have not just a final assembly hall but also paint hangars, new taxiways and aprons as well as a fully functional flight test center. What this does for future labor relations with IAM and SPEEA is not completely clear but for now those relations appear to be worse than ever. Time will tell if they get better between now and 2012. Here are a few more sources of information:

Flightblogger

Leeham.net (Scott Hamilton)

Aviation Week