Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray

July 7 (Bloomberg) -- Boeing Co. agreed to buy Vought Aircraft
Industries’ 787 Dreamliner operations in South Carolina for about $580
million after production bottlenecks at the facility added to two years
of delays for the plane.

Vought also will be released from obligations to repay advances,
Chicago-based Boeing said today in a statement. The facility in North
Charleston performs fabrication and assembly on the Dreamliner’s
fuselage and will be managed by Boeing’s 787 program.

Troubles with suppliers contributed to the five delays in the 787, and
Boeing previously identified Vought as a problem partner because it
wasn’t able to complete agreed-upon work. Boeing, the world’s
second-largest commercial-aircraft maker, said in May that the
“bottlenecks” in South Carolina had cleared up.

The acquisition “should increase the efficiency and seamlessness within
the 787 supply chain,” Rob Stallard, a New York-based analyst with
Macquarie Capital Inc., wrote in a note today. He rates Boeing shares
“outperform.”

Vought, owned by private equity firm Carlyle Group, will continue work
on other Boeing programs, including building other parts for the 787,
737 and 747, Boeing said.

- - -

There's nothing like a "private equity group" to make whatever problems
there are at a company...worse.

Well, there's also the South Carolina factor. Gosh...why would a major
manufacturer be in that state? For cheap, badly trained labor, maybe?

On Jul 7, 10:13*am, HK wrote:
Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray

July 7 (Bloomberg) -- Boeing Co. agreed to buy Vought Aircraft
Industries’ 787 Dreamliner operations in South Carolina for about $580
million after production bottlenecks at the facility added to two years
of delays for the plane.

Vought also will be released from obligations to repay advances,
Chicago-based Boeing said today in a statement. The facility in North
Charleston performs fabrication and assembly on the Dreamliner’s
fuselage and will be managed by Boeing’s 787 program.

Troubles with suppliers contributed to the five delays in the 787, and
Boeing previously identified Vought as a problem partner because it
wasn’t able to complete agreed-upon work. Boeing, the world’s
second-largest commercial-aircraft maker, said in May that the
“bottlenecks” in South Carolina had cleared up.

The acquisition “should increase the efficiency and seamlessness within
the 787 supply chain,” Rob Stallard, a New York-based analyst with
Macquarie Capital Inc., wrote in a note today. He rates Boeing shares
“outperform.”

Vought, owned by private equity firm Carlyle Group, will continue work
on other Boeing programs, including building other parts for the 787,
737 and 747, Boeing said.

- - -

There's nothing like a "private equity group" to make whatever problems
there are at a company...worse.

Well, there's also the South Carolina factor. Gosh...why would a major
manufacturer be in that state? For cheap, badly trained labor, maybe?

Because the southeast U.S. produces a LOT of high tech grads.
Much better schools than, say, Kansas.

"HK" wrote in message
m...

Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray



I recall reading that the "Dreamliner" development and build program
involved a new, global source concept for the various component design and
manufacture .... much more than has typically been done in the past.

Of all the participating companies and organizations, to have one or two not
work out is not really unusual or to be unexpected.

Eisboch

Eisboch wrote:

"HK" wrote in message
m...

Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray



I recall reading that the "Dreamliner" development and build program
involved a new, global source concept for the various component design
and manufacture .... much more than has typically been done in the past.

Of all the participating companies and organizations, to have one or two
not work out is not really unusual or to be unexpected.

Eisboch

Two years' delay? From one supplier?

"HK" wrote in message
m...
Eisboch wrote:

"HK" wrote in message
m...

Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray



I recall reading that the "Dreamliner" development and build program
involved a new, global source concept for the various component design
and manufacture .... much more than has typically been done in the past.

Of all the participating companies and organizations, to have one or two
not work out is not really unusual or to be unexpected.

Eisboch

Two years' delay? From one supplier?

They are doing a lot better than the Airbus.

Eisboch

Eisboch wrote:

"HK" wrote in message
m...
Eisboch wrote:

"HK" wrote in message
m...

Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray



I recall reading that the "Dreamliner" development and build program
involved a new, global source concept for the various component
design and manufacture .... much more than has typically been done in
the past.

Of all the participating companies and organizations, to have one or
two not work out is not really unusual or to be unexpected.

Eisboch

Two years' delay? From one supplier?

They are doing a lot better than the Airbus.

Eisboch

Oh, well...that makes it ok. :)

On Jul 7, 10:38*am, "Eisboch" wrote:
"HK" wrote in message

m...



Boeing Agrees to Buy Vought Aircraft 787 Operations

By Susanna Ray

I recall reading that the "Dreamliner" development and build program
involved a new, global source concept for the various component design and
manufacture .... much more than has typically been done in the past.

Of all the participating companies and organizations, to have one or two not
work out is not really unusual or to be unexpected.

Eisboch

Harry knows nothing about the heavy manufacturing arena, or much of
anything else.

4:15 AM today - Obama: "The future does not belong to those who gather
armies on a field of battle or bury missiles in the ground."

7:15 AM today - Suspected US missiles, Pakistan jets hit militants

--------

Obama: 'Absolutely' no green light for Israel to attack Iran

Biden: Biden: Israel has right to deal with nuclear Iran...

--------

Biden: “We misread how bad the economy was, but we are now only about
120 days into the recovery package,”

Obama: "Um - No"

On Tue, 07 Jul 2009 12:59:16 -0400, wrote:

On Tue, 07 Jul 2009 10:13:47 -0400, HK wrote:

Well, there's also the South Carolina factor. Gosh...why would a major
manufacturer be in that state? For cheap, badly trained labor, maybe?

It probably has more to do with government projects Boeing bids on.
The more states you have content coming from, the better chance you
get the bid through congress.

Boeing has made investments in damned near every state so they can
muscle the local pols.

jps wrote:
On Tue, 07 Jul 2009 12:59:16 -0400, wrote:

On Tue, 07 Jul 2009 10:13:47 -0400, HK wrote:

Well, there's also the South Carolina factor. Gosh...why would a major
manufacturer be in that state? For cheap, badly trained labor, maybe?
It probably has more to do with government projects Boeing bids on.
The more states you have content coming from, the better chance you
get the bid through congress.

Boeing has made investments in damned near every state so they can
muscle the local pols.


Well, we need our military-industrial complex.