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Boeing picks St. Louis for potential jet plant
Boeing Co. said Monday it would assemble new U.S. Air
Force trainer jets at its main military aircraft facilities in Missouri if it
wins a three-way contest for a program estimated by analysts to be worth around
$16 billion.
The move sets up the St. Louis plant in competition with
facilities in Alabama and South Carolina run or planned by Boeing's rivals in
bidding to build an initial 350 T-X jets.
Boeing said
winning the contest would support around 1,800 jobs, but didn't disclose if any
new ones would be created if it wins the contest due to be decided later this
summer and assembles planes in the St. Louis facility, where test aircraft have
been built in partnership with Sweden's Saab AB.
The Boeing offering is
the only "homegrown" entrant from prime defense contractors, with Lockheed
Martin Corp. offering a version of a plane developed by Korea Aerospace
Industries Ltd, while Italy's Leonardo SpA entered its own widely used trainer
after dropping a planned joint bid with Raytheon Co.
The Pentagon
requires the winner to assemble planes in the U.S., though parts are drawn from
global supply chains. Northrop Grumman Corp. pulled out of the contest earlier
this year after designing an all-new plane.
Boeing already builds its
F-15 jet fighter and the F/A-18 aircraft widely used by the U.S. Navy in St.
Louis, and the T-X would help maintain experienced workers at the plants as
orders become scarce.
The U.S. company has explored a potential move of
the F-15 production line to India, to win a big combat jet deal, and the
extension of F/A-18 work hinges in part on Boeing securing overseas orders for
the planes.
Boeing's recent complaint against Bombardier Inc. over
alleged predatory pricing of the CSeries passenger jet has led some analysts to
question whether it can hang on to a potential deal outlined last year to sell
18 F/A-18s to Canada, which has rejected the charges.
"Canada is also a
natural customer for P-8 maritime patrol aircraft and many other Boeing military
products," said Richard Aboulafia at Teal Group in a client note. "Unless, that
is, they start looking to anybody but Boeing for their defense
needs."
The International Trade Commission is due to hold an initial
hearing on Boeing's complaint on May 18.
Boeing has identified winning
the T-X contest as a priority after its joint bid with Lockheed to build a new
Air Force bomber lost out to Northrop. The plane flew for the first time in
December.
Employment at Boeing facilities in Missouri had dipped to just
under 14,000 by the end of Marchsecond only to Washington state -- from around
16,000 a decade ago.
Lockheed would assemble the T-50A jet developed with
Korea Aerospace for the T-X contest in Greenville, S.C., where it also plans to
shift production of its F-16 combat jet from Fort Worth.
Italy's Leonardo
says it would build a plant in Tuskegee, Ala., for its offering and create 750
jobs if it wins the Air Force contract.
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