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Sat, Nov 26, 2011

Boeing Ponders Presence In Wichita

Company Reportedly Considering Closure Of Modification Center

Boeing is reportedly seriously considering closing its modification center in Wichita, which has gotten the attention of lawmakers and union leaders in the state.

KC-46A Tanker Artist's Concept

Following an announcement by the planemaker Monday that it was studying the viability of its Wichita operation, elected and union officials requested a meeting with Boeing. They say the company made promises to put jobs in Kansas should they be awarded the KC-46A contract from the Air Force, which they did in February.

But the Wichita Eagle reports that, according to Kansas Governor Sam Brownback, there is no written agreement or contract requiring Boeing to stay open in Wichita. Republican Congressman Mike Pompeo, who represents the Wichita area, said he has requested a meeting with Boeing CEO Jim McNerney to "remind them of their obligations that they have made in seeing these tankers are built in Kansas and in Wichita."

In a statement released Monday and reproduced on the website of Seattle television station KOMO, the planemaker  said:

"Boeing is studying the future of its Wichita, Kan., facility as part of an initiative to address the current defense budget environment. The Wichita facility faces pressures because of product and services contracts that have matured and expired, and limited prospects for future work.

We are in the process of engaging key stakeholders - including customers, government officials and union representatives - to share this information as we continue to have open and candid discussions about the challenges we face in the current budget and economic environment. Among the options being reviewed is the potential closure of the Wichita site. Because of defense budget pressures, we are conducting a number of market studies to determine how to best preserve and grow our business, and continue to provide quality and cost-efficient services for our customers.

We anticipate completion of the Wichita study by the end of the year or in early 2012."

Senator Moran said the move did not seem to be a tactic on the part of Boeing to get the state to promise new incentives to stay in Kansas, or a negotiating tool for upcoming contract talks with the machinists union. He said the issue seems to be whether it's more economical to finish the airplane as it goes down the line in Everett, WA, than to fly them to Kansas for the same work. And with no market for the tanker outside the U.S., it would be conceivable that there would not be enough work to fill the Wichita plant.

The Wichita Eagle reports that local and union officials have also requested a meeting with Boeing. Ray Goforth, executive director of the Society of Professional Engineering Employees in Aerospace has already set a meeting December 1 to talk about the study. “At this time of Congressional scrutiny of defense budgets, it would be a mistake to materially alter the tanker program they sold to the customer,” Goforth said in a statement posted on the SPEEA website.

FMI: www.boeing.com, http://pompeo.house.gov, http://moran.senate.gov, https://governor.ks.gov/home, www.speea.org

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