. Energy News .




.
MILPLEX
Boeing to close Kansas plant where 2,160 employed
by Staff Writers
Washington (AFP) Jan 4, 2012


Boeing on Wednesday said it would close a Wichita, Kansas plant that employs 2,160 people, risking political ire as it prepares to shift production of a major tanker project elsewhere.

The plant in the central US state is the hub of operations for the B-52 and 767 Tanker programs and will be shuttered by the end of 2013, the firm said.

"The decision to close our Wichita facility was difficult," said Boeing's Mark Bass, adding that the decision was based on the firm's assessment of "the current and future market environment."

The announcement came less than a year after Boeing beat Europe's EADS-Airbus group for a hotly contested $30-plus billion contract to supply up to 179 refueling tankers to the Air Force.

Boeing had claimed that contract would create around 7,500 jobs in Kansas -- a state which had strongly backed its highly politicized tanker bid.

Boeing said it was "too early to tell" what proportion of the jobs would be lost. Some staff would be likely be transferred and some suppliers would be kept.

"Although work on the KC-46 tanker will now be performed in Puget Sound (in Washington state), the 24 Kansas suppliers on the program will be providing vital elements of the aircraft as originally planned," the firm said in a statement.

Elected representatives from Kansas, after having lobbied intensively for Boeing to win the Air Force contract, voiced thinly veiled anger at the decision Wednesday.

"It's a big deal," Wichita area Congressman Mike Pompeo told AFP. "The Boeing company has been in this district for decades and decades. My mother worked at the Boeing Company in the 1950s. These are good jobs, held by good workers."

Pompeo said he would now investigate whether Boeing had misled lawmakers, the US Air force and other officials about their intentions during the bidding and awarding process.

"You have to ask yourself, what is it that really drove the decision to break their promise and when did that really occur?"

"There are hints and suggestions that that occurred well before statements that they made to many many federal officials."

"We all know that there are penalties to making false statements to Federal officials," he said, adding the facts now needed to be established.

There was a similar reaction from Kansas governor and long-time Boeing supporter Sam Brownback.

"No one worked harder for the success of the Boeing Company than Team Kansas," he said, describing the decision as "very disappointing."

Jeremy Hill, the director of Wichita State University's Center for Economic Development and Business Research, said Boeing's decision would cost Wichita's economy $1.5 billion in lost wages over the next decade.

But he said Boeing's decision to keep using most of its Kansas suppliers was a silver lining to otherwise bad news.

"Instead of having a total impact of the loss of 8,000-some jobs, it is going to be a lot less. Obviously the direct jobs are going to disappear."

Unemployment in the Wichita area is 7.2 percent, below in national average of 8.6 percent.

The jobs lost could increase the local jobless rate by around 0.7 percentage point.

According to industry analyst Richard Aboulafia, of the Teal Group, the decision could also spell future political trouble for Boeing.

"It's a difficult calculation to make. Shutting facilities and concentrating work elsewhere saves overhead costs, which is important in a time of shrinking defense revenue," he told AFP.

"Losing political leverage is difficult for a defense contractor. You never know when another highly politicized contract like KC-X (tanker) will appear, and Kansas political delegations have been quite active on Boeing's behalf."

Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries






.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



MILPLEX
Raytheon Books 50 Million in Electronic Warfare Contracts
El Segundo CA (SPX) Jan 03, 2012
Raytheon booked $50 million this month in new contract awards related to its electronic warfare (EW) business. Raytheon's industry-leading electronic warfare portfolio includes airborne and shipboard jammers, towed decoys and radar warning receivers in use on strategic and tactical aircraft, helicopters and surface ships of the U.S. Air Force, U.S. Navy and international customers. " ... read more


MILPLEX
Sky light sky bright - in the office

Germany taps Austrian power reserves for first time

Eight Cities Selected To Receive Free Neighborhood Design Consultations Under US EPA Grant

India against binding emissions pact: minister

MILPLEX
GE Inventor Louis Nerone Builds a Better Light Bulb, Again and Again

New Tech May Reduce Energy Use In Animal Ag Facilities

Faster Colloidal Fluorescence Emitters: Nanoplatelets

Iran plans new naval exercise

MILPLEX
Scottish wind firm passes 1-gigawatt mark

China launches offshore wind farm

ISO New England Selects GL Garrad Hassan as Wind Power Forecaster

Mortenson Construction Completes Comber Wind Project

MILPLEX
Tecta Solar Installs 541.8-kWp Solar Photovoltaic System

AORA Solar Completes Construction of its Second Hybrid Micro CSP Power Station

Solar Array at Neuse River Wastewater Treatment Plant Energized

Investment in African Renewable Energy Reaches $3.6 Billion in 2011

MILPLEX
Iran must prove nuclear drive peaceful: UN chief

Bulgarian nuclear plant gets clean bill of health: regulator

Greenpeace files complaint against French nuclear group

Nuclear watchdog urges French plants to boost safety

MILPLEX
BIO Applauds Congress for Supporting Commercialization of Advanced Biofuels for Military Use

OriginOil Enters Joint Venture to Develop Biorefineries for US DoD Biofuels Programs

Sapphire Energy Installs Custom-Made Software from CLC bio for Biofuel Research

Bio-based Chemicals and Materials Grow 140 percent in 2016

MILPLEX
Why The X-37B Is Not Spying On Tiangong

Getting ready for challenges of space

China sets up state-level aerospace research institute

China issues white paper on space exploration

MILPLEX
Study: 2011 was ninth-warmest in 33 years

Climate change models may underestimate extinctions

Australia endures third-wettest year on record

Mali to give 40,000 tonnes of food to drought victims


.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement