One of the largest commercial airliner manufacturers
The Boeing Company
) decided to expand its existing South Carolina Facility. The
expansion of the existing facility will allow the company to
churn out its 787 Dreamliner at a much faster pace.
Boeing will begin construction of a new paint facility in its
existing North Charleston, S.C. campus in the second half of
2014. The goal is to get the fully assembled 787 Dreamliners
painted in South Carolina from mid 2016.
At present, after a Boeing Dreamliner is assembled in its South
Carolina facility, it is flown to Fort Worth, Texas, for final
paint and then flown back to South Carolina for customer
delivery. This unnecessarily delays the delivery of the aircraft
to the customers.
The 787 Dreamliner is a popular variant well accepted by the
airline industry for its fuel efficiency and comfort. Though
plagued by delays and technical glitches, the Dreamliner hardly
witnessed any slowdown in demand. As of Nov 2013, Boeing received
1,012 orders for the Dreamliner with only 103 delivered since its
Year to date the company received orders for 182' 787. To cope
with the brisk demand, the company needs to spur the production
rate. This new 230,000 square foot paint facility will do
Boeing also decided to add another 468 acres (189 hectares) in
North Charleston, S.C. through a long-term lease. The company
will take the lease from Palmetto Railways, a division of the
S.C. Department of Commerce. The company has an option to
purchase all of the 468 acres (189 hectares) at the end of the
initial lease term at 2027 end. This move will take care of any
future expansion plan of the company.
Apart from its presence in the commercial airline sector, Boeing
has a large exposure in the defense sector. Boeing currently has
a Zacks Rank #2 (Buy). Other stocks from the sector worth
Alliant Techsystems Inc.
Huntington Ingalls Industries, Inc.
). While Alliant Techsystems and HEICO Corporation carry a Zacks
Rank #1 (Strong Buy), Huntington Ingalls holds a Zacks Rank #2
ALLIANT TECHSYS (ATK): Free Stock Analysis
BOEING CO (BA): Free Stock Analysis Report
HEICO CORP (HEI): Free Stock Analysis Report
HUNTINGTON INGL (HII): Free Stock Analysis
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