Boeing averted a potential crisis in its fighter jet production by acquiring the critical GKN Aerospace facility in Hazelwood, Missouri. This deal safeguards not only the continued manufacture of F-15 and F/A-18 fighter jets but also the jobs of approximately 550 skilled workers.
The agreement marks a significant turning point in a previously contentious relationship between the two companies. GKN had planned to close the Hazelwood plant, jeopardizing the production of “superplastics” and “flight-control surfaces” essential to both aircraft. To counter this threat, Boeing filed a lawsuit against GKN in December 2022, alleging a violation of their supply agreement.
“This agreement allows us to not only deliver for our customers but also gives the highly skilled GKN workforce the opportunity to bring their immense talents to bear in support of the warfighter and the St. Louis defense and aerospace industry,” said Steve Parker, Senior Vice President & Chief Operating Officer of Boeing Defense, Space & Security. Parker emphasized the deal as a “win-win-win” for the employees, Boeing, and the St. Louis community.
The acquisition not only secures long-term stability for these crucial fighter jet programs but also resolves the pending litigation between the two companies. This ensures a smooth transition of GKN’s F-15 and F/A-18 operations to Boeing’s control.
This move by Boeing comes at a critical time. The company’s defense sector faces challenges with reported losses in programs like the KC-46A tanker and T-7A trainer. The Hazelwood acquisition, however, brings stability and growth potential to the St. Louis area, a vital hub for Boeing’s fighter jet production. Furthermore, it strengthens Boeing’s position in pursuing international business opportunities, like the potential multi-billion dollar deal with Israel for F-15EX jets.
The future of the Hazelwood facility and its workforce appears secure. A GKN statement acknowledged the positive outcome, saying, “The sale secures the future of the facility for the employees, and we wish everyone at St. Louis very well for the future.”
Boeing’s acquisition of the GKN facility highlights the strategic importance of a resilient supply chain in the aerospace industry. This deal not only safeguards the company’s current fighter jet production but also positions them for future growth.
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