SEATTLE, 30 Nov. 2011.Boeing (NYSE:BA), pending approval of an early contract extension with the International Association of Machinists & Aerospace Workers (IAM), will build the company’s new 737 MAX in Renton, Wa. Boeing has received more than 700 commitments from customers for the 737 MAX, which is expected to enter service in 2017.
Boeing officials, having assessed the business case for production in Renton in light of the economics of a proposed new labor agreement, are prepared to locate 737 MAX production in Renton provided the economics contained in that proposal are achieved, according to a representative. Upon ratification of an agreement by hourly employees, Boeing will make the necessary investment to produce Next-Generation 737s and 737 MAXs in its existing Renton facility.
"The 737 MAX builds upon the legacy of the world's best single-aisle airplane and continues to generate overwhelming response from our customers," says Jim Albaugh, president and chief executive officer, Boeing Commercial Airplanes. "If our employees ratify a new agreement, building the 737 MAX in Renton will secure a long and prosperous future there, as well as at other sites in the Puget Sound area and in Portland, Ore., where 737 parts are built."
The IAM represents hourly employees in Washington, Oregon, and Kansas. The current contract is set to expire in September 2012.
