2017-05-23 21:39:47 UTC
trainer jets at its main military aircraft facilities in
Missouri if it wins a three-way contest for a program estimated
by analysts to be worth around $16 billion.
The move sets up the St. Louis plant in competition with
facilities in Alabama and South Carolina run or planned by
Boeing's rivals in bidding to build an initial 350 T-X jets.
Ticker Security Last Change %Chg
BA Opens a New Window. BOEING COMPANY 183.53 -0.14 -0.08%
LMT Opens a New Window. LOCKHEED MARTIN
CORPORATION 278.16 +1.13 +0.41%
RTN Opens a New Window. RAYTHEON COMPANY 161.48 +0.29 +0.18%
Boeing said winning the contest would support around 1,800 jobs,
but didn't disclose if any new ones would be created if it wins
the contest due to be decided later this summer and assembles
planes in the St. Louis facility, where test aircraft have been
built in partnership with Sweden's Saab AB.
The Boeing offering is the only "homegrown" entrant from prime
defense contractors, with Lockheed Martin Corp. (LMT) offering a
version of a plane developed by Korea Aerospace Industries Ltd,
while Italy's Leonardo SpA entered its own widely used trainer
after dropping a planned joint bid with Raytheon Co. (RTN)
The Pentagon requires the winner to assemble planes in the U.S.,
though parts are drawn from global supply chains. Northrop
Grumman Corp. pulled out of the contest earlier this year after
designing an all-new plane.
Boeing already builds its F-15 jet fighter and the F/A-18
aircraft widely used by the U.S. Navy in St. Louis, and the T-X
would help maintain experienced workers at the plants as orders
The U.S. company has explored a potential move of the F-15
production line to India, to win a big combat jet deal, and the
extension of F/A-18 work hinges in part on Boeing securing
overseas orders for the planes.
Boeing's recent complaint against Bombardier Inc. over alleged
predatory pricing of the CSeries passenger jet has led some
analysts to question whether it can hang on to a potential deal
outlined last year to sell 18 F/A-18s to Canada, which has
rejected the charges.
"Canada is also a natural customer for P-8 maritime patrol
aircraft and many other Boeing military products," said Richard
Aboulafia at Teal Group in a client note. "Unless, that is, they
start looking to anybody but Boeing for their defense needs."
The International Trade Commission is due to hold an initial
hearing on Boeing's complaint on May 18.
Boeing has identified winning the T-X contest as a priority
after its joint bid with Lockheed to build a new Air Force
bomber lost out to Northrop. The plane flew for the first time
Employment at Boeing facilities in Missouri had dipped to just
under 14,000 by the end of Marchsecond only to Washington state -
- from around 16,000 a decade ago.
Lockheed would assemble the T-50A jet developed with Korea
Aerospace for the T-X contest in Greenville, S.C., where it also
plans to shift production of its F-16 combat jet from Fort Worth.
Italy's Leonardo says it would build a plant in Tuskegee, Ala.,
for its offering and create 750 jobs if it wins the Air Force
Write to Doug Cameron at ***@wsj.com
(END) Dow Jones Newswires