Long Beach Boeing Plant to Close Earlier Than ExpectedMonday, April 7, 2014
Boeing Co. said Monday it expected to end production of its C-17 Globemaster III transport jet at its Long Beach plant three months earlier than expected.
Citing current market trends and timing of expected orders, the Chicago aerospace giant said it would close its last Long Beach assembly facility by the middle of 2015, rather than later in the year. It will take inventory-related charges of about $50 million in the first quarter related to winding down operations.
Boeing announced in September that it would end Globemaster production based on declining demand. The jet, which is used to transport heavy equipment, supplies and troops, has been in production since 1991 and is popular as a medical evacuation aircraft. Boeing delivered its last C-17 to the U.S. Air Force just prior to the closure announcement, and has since concentrated on filling remaining overseas orders.
About 2,200 employees support the C-17 program in California, and while the company said some people may be shifted to other work, layoffs began earlier this year.