Monday, March 29, 2010

Boeing calls key 787 test results 'positive'

Associated Press
Monday, March 29, 2010

NEW YORK — Boeing Co. said the results of a key airworthiness test for its long delayed 787 are "positive," but it will be weeks before the aircraft maker can say whether it's a success.

The aircraft maker said Sunday the test involved flexing the jet's wings while applying loads to the frame to replicate 150 percent of the most extreme forces the airplane could experience in flight.

The wings were pushed up about 25 feet (7 1/2 meters) during the ground test performed at Boeing's Everett, Washington, factory.

The test took more than two hours, and thousands of pieces of data were collected to measure wing performance.

Boeing, based in Chicago, says the data will be reviewed over the next several weeks.

Boeing has been testing the plane and its systems for more than three months, after production delays and problems with carbon-fiber composite materials used in the plane put it nearly three years behind schedule. The first test plane made an unplanned landing last month after an engine lost thrust.

Japan's All Nippon Airways is scheduled for the first delivery of the 787 later this year. Boeing says airlines around the world have ordered 851 of the aircraft.

The largest 787 model has a range of up to 3,050 miles and can carry as many as 330 passengers.

Thursday, March 4, 2010

Boeing is a frequent topic among local economic development groups

By JOSH McCANN
jmccann@islandpacket.com
Published Wednesday, March 3, 2010


South Carolina officials have hailed Boeing's plans to build an assembly plant for its 787 Dreamliner in North Charleston as the biggest economic development project in state history.

The company plans to invest hundreds of millions of dollars and create about 4,000 jobs.

So what does Boeing's announcement, spurred by hundreds of millions of dollars in incentives, mean for Beaufort and Jasper counties?
Key players in the deal and local officials addressed that question in three recent meetings.

Ric Tapp, lawyer at Nexsen Pruet
Tapp's firm worked for Boeing to help broker the deal with the state. He spoke Wednesday during a Hilton Head Island-Bluffton Chamber of Commerce business event at Hampton Hall.

He said the 230-plus suppliers that provide parts for Boeing's plane should bring about 16,000 additional jobs to South Carolina.

Some suppliers might seek locations near the assembly plant, Tapp said, but such proximity does not tend to be an important component of Boeing's supply chain.
"None of this is so just-in-time sensitive," he said.

Other suppliers might want better trained workers than those available here, Tapp said. "But your technical colleges can take care of that."

Kim Statler, executive director, Lowcountry Economic Network
Statler, head of a public-private partnership that recruits businesses to the region, was slated to speak at another event Wednesday at Belfair in greater Bluffton.

The session -- titled "BOEING SC: Dreams Take Flight" -- was about how incentives can boost business in South Carolina.

Statler said Boeing's plant dovetails with fellow aircraft manufacturer Gulfstream's existing facility in Savannah and the arrival of the Joint Strike Fighter, a next-generation military jet. Some of the jets are expected to be based at Marine Corps Air Station Beaufort by 2014.

Network officials, who have identified the aerospace and defense industry as one of its four focus areas, are scouring supply chains to find businesses that serve one or more of those aircraft.

Such businesses "now might find South Carolina a very appealing location for (its) next manufacturing facility," Statler said. "That's the kind of thing we're looking at."

Statler said network officials "have some good ideas" about prospects, but declined to elaborate.

Statler plans to make the case that aviation businesses should consider the Lowcountry when she travels with state officials to England for a major trade show in July.

The region's advantages include proximity to military bases, Interstate 95 and rail lines, Statler said. CEOs also enjoy the coastal quality of life, she said.
Disadvantages include the high cost of property and "very limited" existing facilities available for light manufacturing.

Unlike Tapp, Statler said the area's workforce should be an asset because a steady rotation of people leave local military bases with aviation experience.
She cautioned the network's strategy might not bear fruit immediately, but she said the long-term outlook is promising because Boeing's arrival allows the region to seek businesses it couldn't before.

"Fifty percent of the battle is making it known what your emphasis is," Statler said.

David Ginn, president and CEO, Charleston Regional Economic Development Alliance
Ginn's agency works to develop the economies of Charleston, Berkeley and Dorchester counties. He spoke Feb. 16 at a Business 4 Breakfast event organized by the Beaufort Regional Chamber of Commerce at the Hilton Garden Inn.

Ginn said Wednesday local communities are ideally situated to capitalize on the presence of both nearby aircraft manufacturers.

When asked what benefit Boeing's plant might provide Beaufort and Jasper counties, Ginn said: "I would think Jasper County's position along I-95 and close proximity to both Charleston and Savannah would make it a good location for suppliers serving both the Boeing operation in our region and Gulfstream Aerospace in Savannah."

Wednesday, March 3, 2010

Boeing chief tells why S.C. chosen

The State
Wednesday, March 3, 2010
By DOMINIC GATES - Seattle Times

SEATTLE - Jim Albaugh, chief executive of Boeing Commercial Airplanes, conceded that the choice of North Charleston, S.C., over the Everett, Wash., for a new 787 Dreamliner assembly line is expensive and risky.

In South Carolina, Boeing must build a new factory and hire workers from an inexperienced labor pool.

But in an exclusive interview, Albaugh said the cost of the strike at its Puget Sound operations in fall 2008 outweighed that.

Albaugh - who last fall recommended to the board that it choose North Charleston - said Washington state is his preferred location for building future airplanes.

He said Boeing didn't pick South Carolina for expansion last year because of Washington's tax rates or regulatory system. Nor was it a question of chasing low wages.

"The overriding factor was not the business climate. And it was not the wages we are paying today," Albaugh said. "It was that we can't afford to have a work stoppage every three years. And we can't afford to continue the rate of escalation of wages."

The 787 assembly line is South Carolina's biggest economic development announcement, with Boeing investing $750 million and hiring 3,800 workers. Suppliers are expected to add thousands more jobs.

Although many union members believe the decision to go to Charleston was made long before last fall's final negotiations with the Machinists, Albaugh insisted it was not.

"I went into this feeling that if we could get it done here, we could save the company a lot of money," Albaugh said. "There were two things we needed, and we couldn't get those things done."

He repeatedly made clear that those two things - first, no strikes; second, lowered escalation of wages in the future - remain deal breakers for placing future work here.

Without that, he said, the company won't be competitive, not only against Airbus, but also against looming threats from plane makers in Canada, Brazil, China and perhaps Russia.

"This is a great work force here. They are magicians," Albaugh said. "My job is to make sure they have jobs five years from now, 10 years from now, 20 years from now.

"If we don't have a company, nobody has jobs," he said. "That's the worst outcome for Puget Sound."

Boeing's next new airplane after the Dreamliner will determine the future of aerospace in the Puget Sound region.

Albaugh said that when the time comes to choose a final assembly site for that plane, he doesn't want to hold an open competition as the company did in 2003 for the 787 Dreamliner.

"If I'm involved, I'm not going to have a competition like that," Albaugh said. "The commitment I can give you is that the first preference is to put the work here."

Monday, March 1, 2010

Boeing Supplies Could be 10-ro-15

The Post and Courier
March 1, 2010
John McDermott

Boeing Co. won't be nailed down on the specific number of suppliers that could follow its 787 Dreamliner assembly plant to the Charleston area, but another Fortune 500 business that's almost certainly working to provide factory sites to those vendors has aired its own guesstimate.

During its latest earnings call with analysts, MeadWestvaco Corp. president Jim Buzzard gave listeners an update on the packaging giant's North Charleston-based real estate development arm.

'We unveiled the master plan for our large East Edisto property, which was met with a very positive reaction from the community in South Carolina,' he said. 'We're already working with local governments on long-term development agreements and infrastructure plans and we expect that work to continue through 2010.'

The talk then turned to the large industrial park near Summerville that MeadWestvaco is developing with the Rockefeller Group. Buzzard noted that the joint venture had landed its first tenant, tire importer TBC Corp.

'We are actively pursuing prospective tenants for a second site on this property as well as other industrial and development projects,' he said. 'The long-term dynamics for these properties are very strong, especially with the recent announcement that Boeing will open a second assembly plant for their Dreamliner aircraft in the North Charleston area and bring as many as 10 to 15 suppliers to the region along with them.'