Chicago-based Boeing has completed its purchase of Vought Aircraft Industries in North Charleston for $580 million.
The manufacturing plant, at which fuselage sections for Boeing’s 787 Dreamliner airplane are built, will be called Boeing Charleston. Boeing Charleston will be managed by the 787 program as a wholly owned subsidiary.
“Although we have now closed an important chapter in our company’s history, we take pride in knowing Vought’s contribution will live on in this revolutionary aircraft,” said Elmer Doty, president and CEO of Vought Aircraft Industries, based in Dallas, Texas. “We salute the successful collaboration on this historic 787 project with state and local officials, business and education leaders and our employees from South Carolina. We are proud to have played a role in establishing the aerospace industry in the Lowcountry.”
Through the agreement, originally announced in early July, Boeing will acquire the North Charleston facility, its assets and inventory and assume operation of the site. The parties will also resolve all matters related to Vought’s prior work on the 787 program. The cash consideration to be paid to Vought at closing is approximately $580 million. In addition, Boeing will release Vought from its obligations to repay amounts previously advanced by Boeing. Separately, Boeing entered into new agreements with Vought for work packages on the 737, 777 and 787.
“Integrating this facility and its talented employees into Boeing will strengthen the 787 program by enabling us to accelerate productivity and efficiency improvements as we move toward production ramp-up,” Scott Carson, president and CEO of Boeing Commercial Airplanes, said earlier this month. “In addition, it will bolster our capability to develop and produce large composite structures that will contribute to the advancement of this critical technology.”