Reports say Vought to sell local operation to Boeing

Vought Aircraft Industries Inc. already has sold some of its North Charleston operations to the Boeing Co.

Now, reports are flying that it is set to sell its entire 787 fuselage plant to the aerospace giant.

The aviation Web site Flightglobal, which is known in the industry for unearthing inside secrets about Boeing's business maneuverings, reported Wednesday that a sale of the sprawling manufacturing complex off International Boulevard is imminent.

The report cited unidentified multiple sources who are familiar with the deal. The Wall Street Journal said later Wednesday that it, too, had obtained confirmation of the sale.

Dallas-based Vought, which is owned by the Carlyle Group, declined to address speculation about a spin-off of its business at Charleston International Airport.

"As matter of public policy, we don't comment on potential mergers, acquisitions or divestitures," said spokeswoman Lynne Warne. "That's just the bottom line."

Boeing also declined to comment, according to news reports.

The 787 has been closely watched because of the unusual way it is being built. Its major components are being manufactured by vendors around the world and flown to the Seattle area for final assembly.

But glitches in the far-flung supply chain and other startup issues have pushed back the passenger jet's first flight by two years, costing Boeing orders and potentially millions of dollars in penalties.

Aviation analyst Richard Aboulafia of The Teal Group in Fairfax, Va., said one reason the company would want to acquire Vought's local operation is to give it direct control of a key vendor as it scrambles to get the Dreamliner in the air. The initial test ride that was scheduled for last month was scrapped for undisclosed reasons, and it has not been rescheduled.

"I think they have to catch up pretty fast," Aboulafia said Wednesday.

The possibility of a sale of the Vought plant is creating angst in the Northwest, the longtime home to Boeing's aircraft manufacturing hub and the thousands of well-paid workers it employs.

The fear is that the deal would make it easier to steer a proposed second production line for the 787 to the Lowcountry rather than Puget Sound.

Aviation Week & Space Technology recently reported that the Charleston International site is the front-running location for a new assembly line, which would help Boeing to minimize late orders.

Among the advantages it has over Seattle: lower wages, tax incentives and ample room to expand.

Boeing's chairman and CEO, James McNerney, was quoted during the recent Paris Air Show as saying his company was "actively looking" at setting up a second 787 line. He did not address the timing or location.

Aboulafia said "it's a reasonable possibility" to suggest Boeing will build the second assembly line in North Charleston if it indeed buys the Vought plant.

"But I think, given where they are now, they're probably focusing more on program execution and making sure all the components are fitting in," he said.

The Charleston region scored high marks a few years ago when Boeing was scouting sites to assemble the 787.

While the plant eventually went to Everett, Wash., the Lowcountry gained two big consolation prizes from the search process: side-by-side factories at Charleston International that house two 787 fuselage suppliers, Vought and Global Aeronautica LLC.

In all, more than 60 percent of the 787 airframe is made at the plants.

Vought owned half of Global Aeronautica until last year, when Boeing bought out its stake.

Vought's North Charleston plant has been getting back on its feet in recent months after several setbacks.

It has been recalling workers who were sent home last November when it ceased production as a result of a two-month strike at Boeing.

And in May, the plant completed and delivered its seventh rear fuselage section for the 787, the first that will be used on a commercial flight. The previous six were for testing purposes.

Contact John McDermott at 937-5572 or jmcdermott@postandcourier.com.