Boeing [BA] is moving its headquarters from Chicago to Arlington, Virginia, the company said May 5. The company plans to develop a research and technology hub in the area focused on cyber security, autonomous operations, quantum sciences, and software and systems engineering.

“We are excited to build on our foundation here in Northern Virginia. The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent,” said Boeing President and CEO Dave Calhoun.

Calhoun said flexible and virtual solutions Boeing has adopted over the past two years allows the company to allocate resources to critical manufacturing and engineering facilities and training resources.

“Focusing our R&D and talent development in areas that support digital innovation will fuel the introduction of cutting-edge capabilities. This new hub in Northern Virginia will follow the successful implementation of this technology strategy in other regions,” commented Greg Hyslop, Boeing’s chief engineer.

The company said it will maintain a significant presence in Chicago and the surrounding region.

The Boeing Defense, Space, and Security business unit is based in Arlington and will continue to be based there.  Space and Launch and Boeing Satellite Systems, both part of that business unit, will maintain their respective headquarters in Titusville, Florida and El Segundo, California, respectively.

Boeing Commercial Airplanes will continue to be based in Seattle, Washington, as Boeing Global Services will continue to be based in Plano, Texas.

This move comes after Boeing recently reported first-quarter revenue of $14 billion, an 8% dip compared to the same time period in 2021. The company reported lower defense volume and charges on fixed-price defense development programs, partially offset by commercial services volume.

Virginia officials applauded the decision. “The decision to call Virginia home shows that the commonwealth is the premier location for aerospace companies. I look forward to working with Boeing to attract even more talent to Virginia especially given its reputation for engineering excellence,” Virginia Gov (R) Glenn Youngkin said in a statement.

Rep. Don Beyer (D-Va.), who represents the Northern Virginia suburbs, highlighted this will bring more jobs to the region. “Northern Virginia has long been a growing hub for tech innovation and the aerospace industry, and now we welcome yet another major advance in this sector for our region,” Beyer said in a statement.