Boeing Plans to Close Factories in Wichita at The End of 2013
by U.S. origin leading aircraft manufacturer, Boeing Co.., Plans to close one plant in the City of Wichita at the end of 2013. Employing 2160 people, the factory was forced to close by reason of the difficulties Boeing gets new project maintenance and assembling aircraft for the U.S. military after the government tightened the defense budget.
According to Reuters, Boeing announced it’s difficult decision on Wednesday. This drew criticism from politicians the state of Kansas, who felt Boeing had violated their commitment to the region.
“Related to the reduction in defense spending, as well as changes in consumer priorities, Boeing has decided to close its operations in Wichita for the sake of reducing costs, increasing efficiency, and encourage competitiveness,” said Mark Bass, Vice President and General Manager of Boeing’s defense business units in the Division of Maintenance, modification, and Updates.
However, Boeing did not provide estimates of how much the budget can be saved and the costs associated with the closure of its plant in Wichita.
According to Fox News television station, a business unit of Boeing in Wichita since five years ago suffered the closure of a number of programs and reduction of government contracts.
This plant is the basis for one business unit of Boeing, Global Transport & Executive Systems. The unit was supporting assembly for the U.S. Air Force aircraft, including B-52 aircraft program and the KC-46 that serves as a refueling aircraft.
The closure has implications for mass layoffs. The first wave of layoffs at Boeing’s Wichita plant probably began in the third quarter of 2012.
767 conversion project to the KC-46 tanker aircraft will be transferred to the Boeing factory in the City of Puget Sound, Washington state. Another program that has been done in Wichita will also be transferred to Texas and Oklahoma.
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