Boeing buys out partner in 787 sub-assembly venture

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Boeing buys out partner in 787 sub-assembly venture

By James P. Miller and Julie Johnsson | Tribune staff reporters
10:56 AM CDT, March 28, 2008

Boeing Co. disclosed Friday that it plans to buy out one of two partners in a joint venture that does sub-assembly work for the aerospace giant's new 787 "Dreamliner" jetliner, which has been plagued by production delays as it moves toward commercial rollout.

Chicago-based Boeing didn't say why it has agreed to purchase Vought Aircraft Industries' interest in the South Carolina fuselage sub-assembly operation known as Global Aeronautica LLC, nor did it disclose terms of the transaction.

But the Global Aeronautica venture has for some time been considered the weakest link in the supply chain for the 787 Dreamliner project, and the implication of today's announcement is that Boeing is replacing Vought in the the sub-assembly operation because of "challenges" the venture has encountered. Vought will focus on its more fundamental role of providing a needed structural component for the assembly team, the companies said. [Full Article]

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