Boeing Co. announced that it is going to add hundreds of contract employees at its plant located in South Carolina. This move is provoked by the companys need to deal with some production problems associated with the 787 Dreamliner jets line.
More than 300 contract mechanics and inspectors are being hired immediately at the North Charleston factory to assist the more than 7,000 workers employed by the company in South Carolina. Three people with knowledge of the matter said that Boeing Co. could increase their number to between 500 and 1,000. This move, however, is considered a turnaround by Boeing Co., especially taking into consideration the fact that in the beginning of 2013 the company terminated the contracts of hundreds of employees, while it was trying to reduce costs at North Charleston. It is also an indicator that Boeing continues to try increasing the production of 787 Dreamliner while also trying to reduce the costs.
Some Dreamliners are assembled at the North Charleston plant, and mid and rear sections of the planes carbon-fibre composite fuselage are produced there. Four people familiar with the matter revealed that the production of the plant in question has been doubled in 2013. One of those people also said that the incomplete work on mid-body sections currently exceeds the level in July 2011, when the plant in North Charleston suspended shipments for a month in order to catch up.
The information was confirmed by one of the Boeing spokesmen, who said that the company is in hiring some contractors in North Charleston, but refused to give any more details. The spokesman also revealed that Boeing is trying to “stabilize” its production of the Dreamliner mid-body sections, while a new, longer version of the 787-9 is introduced.
The company announced that there is no plan to slow production or pause its shipments from North Charleston plant: “While we have some challenges to address, we see no risk to the programs ability to meet its commitments.”
According to CNN Money, the current share price of Boeing Co. is 1.91% up, and its one-year return rate is 5.77% up. The 22 analysts offering 12-month price forecasts for Boeing Co. have a median target of 152.00, with a high estimate of 175.00 and a low estimate of 135.00. The median estimate represents a +5.29% increase from the last price of 144.37.
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