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Boeing To Shift 787 Dreamliner Production To South Carolina: Report

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Boeing Co. (BA) plans to consolidate 787 Dreamliner assembly in South Carolina, ending production of that jetliner in Washington state, reflecting weak demand caused by the coronavirus pandemic, reported The Wall Street Journal, citing people familiar with the matter.

Rep. Rick Larsen, D-Everett, issued a statement, saying "Boeing's decision to pull its 787 production out of Washington state is shortsighted and misplaced." He added, "As the economy comes back and air travel returns, I will fight to bring 787 production back to Everett."

Boeing had said in July that it would evaluate the most efficient way to produce the 787, including studying the feasibility of consolidating production in one location.

Boeing has also lowered commercial production rates and announced a net 10% workforce reduction in 2020 through a combination of voluntary layoffs, attrition and involuntary layoffs or ILOs to align to a smaller market.

Citing the weak demand and delay in purchases of jets during the virus crisis, Boeing on April 29 had announced its plans to trim employee number by roughly 10% through a combination of voluntary layoffs, natural turnover and involuntary layoffs. The company then said deeper reductions would be there in certain areas, expecting more than 15% cut across commercial airplanes and services businesses, as well as corporate functions. Boeing has around 160,000 employees globally.

The company in early May resumed all 787 operations at its South Carolina facility that were temporarily suspended on April 8 in response to the COVID-19 pandemic.

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