Boeing [BA] on Wednesday said it will headquarter its new global services segment in Plano, Texas, near Dallas, adding that the business will be operational in July.
Boeing last November said it would create a separate operating segment for most of its current commercial and defense services business, with aspirational plans to triple revenue from this work to about $50 billion annually over the next five to 10 years. Consolidating its services work will create more focus on the growing global services market, it said then.
Boeing Global Services headquarters will be centrally-located within the company’s domestic footprint, provides proximity to major operations for commercial and defense customers, and provides access to a transportation hub so that it can reach customers quickly.
“We have a fixed focus on serving our customers worldwide, and this location assists in our mission of providing uncompromising services worldwide,” Stan Deal, president and CEO of Boeing Global Services, said in a statement.
Boeing has said that the current revenue of the services segment will be. The Global Services & Support unit within its defense business posted $9.9 billion in sales in 2016, up 8 percent over 2015. The company doesn’t break out its commercial services revenue.
Boeing will report financials for the global services segment in July when it releases its third quarter results, a company spokeswoman said in an email. The segment will have about 20,000 employees globally.
Texas Gov. Greg Abbott (R) said in a statement that his administration’s focus on low taxes and reasonable regulations “removes barriers to entry and provides certainty for developing industries.”