By Molly Parker
mparker@scbiznews.com
Published July 31, 2009
The Boeing Co. will officially stake out its new territory in North Charleston on Monday. At an employee ceremony, the Chicago-based company will unveil a new sign declaring the former Vought Aircraft Industries facility its own.
On Thursday, Boeing announced that it had officially completed a $580 million transaction to purchase the local Vought plant, a key supplier to Boeing’s 787 Dreamliner program.
The plant, named Boeing Charleston, will be managed by the 787 program as a wholly owned subsidiary.
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Scott Fancher, a Boeing vice president charged with overseeing the 787 program, will address more than 500 employees at the manufacturing facility near the Charleston International Airport. Boeing is planning a community celebration for a later date.
Boeing Charleston will continue to perform fabrication, assembly and systems installation for 787 aft fuselage sections.
In a statement, Vought CEO Elmer Doty said his company is “proud to have played a role in establishing the aerospace industry in the Lowcountry.”
“Although we have now closed an important chapter in our company’s history, we take pride in knowing Vought’s contribution will live on in this revolutionary aircraft,” Doty said. “We salute the successful collaboration on this historic 787 project with state and local officials, business and education leaders and our employees from South Carolina.”
Through the agreement, originally announced in early July, Boeing will acquire the North Charleston facility, its assets and inventory and will assume operation of the site. The parties will also resolve all matters related to Vought’s prior work on the 787 program.
The cash consideration to be paid to Vought at closing is approximately $580 million. In addition, Boeing will release Vought from its obligations to repay amounts previously advanced by Boeing. In total, the deal amounts to about a $1 billion investment by Boeing.
Separately, Boeing entered into new agreements with Dallas-based Vought for work packages on the 737, 777 and 787. The company will continue its role as a Boeing supplier, though on a smaller scale.
Reach Molly Parker at 843-849-3144.
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