Moving to tighten its supply chain in the development and production of the 787 Dreamliner aircraft program, Boeing [BA] yesterday said it has agreed to acquire Vought Aircraft Industries‘ facility in South Carolina that is constructing two composite barrel sections of the 787 fuselage for $580 million.
The facility in North Charleston doesn’t produce any structures for military aircraft.
Terms of the deal include releasing Vought of any obligations to repay $422 million in advance payments Boeing made to the company for related to research and development and tooling on the 787 program. The transaction is expected to close in the third quarter of 2009.
Boeing said the deal will allow it to “accelerate productivity and efficiency improvements” as it moves toward ramping up 787 production. The acquisition will also “bolster” Boeing’s capabilities to develop and produce large composite structures, the company said.
Vought said the financial demands of the 787 program are growing beyond what the company can support.
Vought, which has $1.8 billion in sales, will continue to provide structures and components on a variety of Boeing commercial and military aircraft programs, including the 787. Vought’s facility in South Carolina has about 500 employees. The company doesn’t break out revenues by programs, but so far the facility has not had a significant contribution to sales.