Boeing has announced its facility in Wichita, currently employs more than 2,160 people, will close by the end of 2013.
Boeing Wichita is the base for the company’s Global Transport & Executive Systems business and its B-52 and 767 International Tanker programs.
The facility also provides support for flight mission planning and integrated logistics.
The facility falls under the remit of the Boeing Defence, Space & Security (BDS) unit.
“The decision to close our Wichita facility was difficult but ultimately was based on a thorough study of the current and future market environment and our ability to remain competitive while meeting our customers’ needs with the best and most affordable solutions,” said Mark Bass, vice president and general manager for BDS’ Maintenance, Modifications & Upgrades division.
“We recognise how this will affect the lives of the highly skilled men and women who work here, so we will do everything possible to assist our employees, their families and our community through this difficult transition.”
Over the past five years, contracts in Wichita have matured, programs have come to a close or are winding down, and the site does not have enough sustainable business on the horizon to create an affordable cost structure to maintain and win new business.
“In this time of defence budget reductions, as well as shifting customer priorities, Boeing has decided to close its operations in Wichita to reduce costs, increase efficiencies, and drive competitiveness,” said Bass.
“We will begin program transitions in the coming months, with the complete closure of the site scheduled for the end of 2013.
“We do not anticipate job reductions as a result of this decision until early in the third quarter of 2012.”
Bass said that Boeing will continue to have a significant impact on the Kansas economy and the health of the state’s aerospace industry.