GKN Aerospace May Be In The Market

According to a report in the Seattle Times, Raytheon Aircraft Co. is close to selling off its Wichita fabrication division to a British company called GKN.

In the story, which was a next-day follow-up to another article on the possibility of Boeing selling its on Wichita plant, the Times says British aerospace supplier GKN Aerospace "is already close to a deal to buy Raytheon's fabrication division in Wichita." The newspaper cites an unnamed source identified only as an executive with a Wichita aerospace supplier with the sale of the Raytheon Aircraft unit.

Raytheon officials would neither confirm nor deny the information in the Times report, which was a follow-up to a Sunday story in which it reported that Boeing Co. is considering selling its Wichita plant.

"We do not respond to rumors of acquisitions or divestitures," says Raytheon Aircraft spokesman Tim Travis.

GKN officials did not respond to the Times' requests for comment on the report.

If true, this news is not entirely surprising, as Raytheon Aircraft officials have publicly stated in the past that the company plans to move to a business model in which its Wichita plant would only assemble the general aviation and business aircraft it currently manufactures in order to lower its costs. If sold, this transfer could be the third piece of work Raytheon Aircraft has moved to an outside supplier in the past seven months.

Last July, Raytheon Aircraft said it would move its work manufacturing plastic parts and radomes to The Nordam Group, a Tulsa, (OK).-based manufacturer of airplane parts and interiors. And in November, Raytheon said it would outsource work on its aircraft wiring harnesses to Labinal Inc.'s facility in Mexico.

FMI: www.raytheonaircraft.com