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Wed, Jul 08, 2009

Washington State Business Leaders React To Boeing Purchase Of Vought Facility

Concerned That Aerospace Jobs May Move To South Carolina

Businesses in Washington state are united in their resolve to keep production of Boeing airplanes in Washington, according to Washington Roundtable President Steve Mullin.

Mullin’s comments come on the heels of an announcement early Tuesday that Boeing is acquiring a South Carolina plant where Vought Aircraft Industries currently builds the two rear fuselage sections of the 787.

Citing the potential that Boeing could open a production line in South Carolina as a devastating blow to the Washington state economy and its prospects for early economic recovery, Mullin said he expects the Roundtable and other business organizations to come together in a full court press encouraging Boeing to keep production in Washington.

Business leaders recognize that, while they respect Boeing’s right to make a business decision, the negative effects on the state would be substantial. A number of them released statements following Boeing's announcement Tuesday.

“Boeing has to make a business decision about where future production should go. I want it to be here in Washington, but there are absolutely no guarantees anymore," Mullin said. “Boeing is a global company and they will locate where it makes the best business sense. Their customers are going to have a lot to say about it and some of those customers have expressed concern about Boeing’s labor relations here in the Seattle area.”

Washington Roundtable Chair John Stanton said, in a statement, "Airlines simply can’t make billion-dollar decisions on new aircraft and then face the prospect of delivery delays because of labor disputes. If the workers and the company can’t figure out how to trust each other and get along, then the company has little choice but to locate operations in communities that will be more welcoming. If Seattle wants to keep Boeing, they better stand up and show it because there are dozens of other states that will welcome the jobs and the economic activity.”

Those comments were also echoed by Phil Bussey, President and CEO of the Greater Seattle Chamber of Commerce. “I want future Boeing production in the Puget Sound region, not just for the direct jobs, but also for all the indirect jobs that Boeing creates and the community support they provide. This region is home to a world-class aerospace sector and we need to keep it vibrant and growing. The community must speak loud and clear that we value Boeing’s contribution to our economy and our way of life."

Part of the Dreamliner business plan was to have parts manufactured in locations around the world, but brought to Seattle for final assembly. Today's announcement of the acquisition of the Vaught assembly plant gives Boeing the option of operating a second line in the eastern U.S.

FMI: www.boeing.com, www.seattlechamber.com

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