July 7, 2009

Boeing buys out Vought plant

U.S. airplane maker Boeing said it has struck a deal to buy out a Vought Aircraft Industries production facility in South Carolina.

The plant has been used to assemble fuselage parts for the long-delayed 787 Dreamliner, The State in Columbia, S.C., reported Tuesday. A year ago, Boeing purchased 50 percent of the operation.

Boeing said it would pay $580 million for the remaining 50 percent of the North Charleston plant. In addition, it would forgive a loan it made to Vought.

The 787's maiden flight was postponed last month, but Vought President and Chief Executive Officer Elmer Doty said he anticipates a production run will overwhelm the smaller company.

The financial demands of this program are clearly growing beyond what a company our size can support, he said.