Boeing Saves 550 Jobs by Buying Back GKN’s St. Louis Operations
In a surprising turn of events, Boeing announced its decision to buy back GKN’s St. Louis operations, saving 550 jobs in the process. This move comes after GKN Aerospace, the sole supplier of key parts for Boeing’s F-15 and F/A-18 fighters, announced the closure of its Hazelwood plant due to profitability issues.
Boeing’s acquisition of GKN’s operations was seen as a necessary step to secure its supply chain and ensure the continuation of production for its fighter jets. With new orders from the U.S. Navy and a pending deal with Israel for F-15EX fighter jets, Boeing needed to act swiftly to prevent any disruptions in its manufacturing process.
The decision to outsource the fabrication business to GKN in 2000, which was aimed at cost-cutting and improving competitiveness, has now come full circle with Boeing bringing these operations back in-house. This move reflects a shift in Boeing’s strategy as it reassesses its dependence on suppliers like GKN and Spirit AeroSystems.
The acquisition of GKN’s St. Louis operations not only secures jobs but also ensures the continuity of production for Boeing’s fighter jets. With the aerospace industry facing challenges, this strategic move by Boeing demonstrates its commitment to maintaining a strong and reliable supply chain for its defense products.