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CONTACT SCBJ John Wolcott, Editor jwolcott@scbj.com Dave Clark, Assistant Editor dclark@scbj.com

Boeing will build, flight test and deliver 787s in South Carolina to speed delivery of 840 planes

By John Wolcott
SCBJ Editor

The second production line for the 787 Dreamliner will be in Charleston, S.C., Boeing officials announced Oct. 28, the same day that negotiations broke down between Boeing and the Machinists union while trying to reach an agreement on suspending strike votes for 10 years to encourage the company to build the second line at its Everett site.

Although Boeing officials renewed their commitment to Puget Sound airline production, the announcement rattled nerves across the state, spurring fears that new production lines for 737 jets or future new airliners might also be built out of state.

“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 the move will strengthen the company’s competitiveness and sustainability and help it grow for the long term.

“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,” Albaugh emphasized. “We remain committed to Puget Sound.”

He said 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 to fulfill 840 backlogged orders and future orders for the plane.

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 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.

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.

“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.

Approximately 55 airlines have ordered around 840 of the 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 and provide 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.

In South Carolina, the Charleston Post and Courier carried “breaking news” video announcements from its newsroom about the long-awaited Boeing decision, noting that it has ended an effort by Washington state to become the production site for the second line.

On Oct. 27, however, the South Carolina state Senate approved a set of incentives aimed at making Charleston an attractive choice for Boeing’s second 787 assembly line. Boeing already builds the 787 rear fuselage section at a plant in Charleston that it recently purchased.

The incentives included low-interest construction bonds and a sales tax exemption on fuel used in test flights. To qualify, a company would have to create at least 3,800 full-time jobs and invest at least $750 million in the state over seven years. Although Washington state approved financial incentives for Boeing to build the first 787 line in Everett, last year’s 57-day Machinists strike is believed to have played a major role in the company’s Charleston decision.