Plant Employs 265 Workers

The axe has fallen. Boeing announced Wednesday it will end parts production operations at its site in Oak Ridge, TN by the first quarter of 2008.

The decision to end parts production operations was made because the facility no longer has sufficient work for Boeing Commercial Airplanes, or other parts production work, to remain in operation. Exiting Oak Ridge is part of the continued consolidation and alignment of parts manufacturing capability and capacity across Boeing Fabrication facilities.

In July, Boeing will begin the first in a series of 60-day layoff notices to employees in association with this announcement.

Boeing shared the news Wednesday in meetings with the 265 people who work at the Oak Ridge facility. In April, employees were informed of the company's intention to exit Commercial Airplanes parts production in Oak Ridge and move remaining work to Boeing Salt Lake City and external suppliers.

The Oak Ridge facility previously produced flight deck consoles, forward instrument panels, aisle stands and other metal machined parts for Commercial Airplanes.

Centrifuge component work has been provided by Boeing for USEC in support of the Lead Cascade/American Centrifuge program since 2004. Boeing established the Oak Ridge facility in 1981 to support early centrifuge parts manufacturing.

The Oak Ridge site's other key customer, USEC Inc., together with BWX Technologies, Inc., announced their decision to enter into a long-term contract for BWXT to assume responsibility for production of centrifuge components in Oak Ridge.

"We are proud of the value you provided to our customers over the years," said Gary Bomhoff, Oak Ridge site leader, to employees. Bomhoff added there are opportunities across Boeing for employees willing to relocate to other sites.

FMI: www.boeing.com