Updated Oct 28, 2009 - 7:00 pm
Boeing chooses South Carolina over Everett
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Boeing has confirmed the company will send its second 787 production line to North Charleston, South Carolina rather than Everett.
"Establishing a second 787 assembly line in North Charleston will expand our production capability to meet the market demand for the airplane," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes in a news release.
Boeing said in addition to building the Dreamliner in South Carolina, the company also has the capability to test and deliver the airplanes from that facility.
In a live news conference after the announcement from Boeing, Washington Governor Chris Gregoire said there's still a responsibility to support the some 80,000 aerospace workers in the state. Gregoire also stressed the need to move forward, the first step of which will be securing the Airforce Tanker contract.
The South Carolina full Senate voted 44-0 on low-interest construction bonds and incentives that include 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.
"I can't tell you how thrilled I am and the people of South Carolina are to be a part of the Boeing family, to be a part of a company that produces world-class aircraft," South Carolina Senator Larry Grooms told KIRO Radio.
"It's really a dream come true for the people of our state. We have one of the highest unemployment in the nation. We have the highest unemployment in the south," said Groom.
Groom added that he doesn't believe his state took jobs away from Puget Sound Boeing workers. "We're not a bunch of poachers. We're all Americans and the competition is not with Americans, it's with the Europeans and Airbus. I don't want Airbus kicking our tail."
Until the move is complete, Boeing said it 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 that second line is running on its own, the "surge capability in Everett will be phased out."
Everett is the site of Boeing's commercial aircraft division, where the company has assembled early versions of the 787. The first flight and deliveries of the high- tech aircraft have been postponed repeatedly due to manufacturing glitches and a labor strike.
Despite the decision to move, Albaugh said, "We remain committed to Puget Sound." He added, "Everett will continue to design and produce airplanes, including the 787, and there is tremendous opportunity for our current and future products here."
On Wednesday morning Senator Patty Murray asked both the Machinists and Boeing officials to Washington D.C. to restart their talks under her moderation.
Talks between Boeing and the Puget Sound Machinists union over a proposed 10 year no-strike deal ended without an agreement.
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