Boeing yields and buys GKN ‘s Hazelwood plant, saving F/A-18 and F-15 production

Boeing was forced to buy the Hazelwood plant of GKN, a key supplier that makes parts for the F/A-18 Super Hornet and late-model F-15 Eagle aircrafts, in order to safeguard its production.

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For more than a year, Boeing has been in litigation with its supplier GKN Aerospace over the company’s plans to close its Hazelwood plant by the end of the year and lay off about 700 workers there. In addition to GKN, Boeing also sued its British parent company, Melrose Industries, alleging that closing the Hazelwood factory would violate GKN’s agreements to supply key parts for the manufacture of these fighter jet models.

See also – Boeing: F-15EX and F/A-18 production in jeopardy due to critical supplier issues

Boeing claimed that Melrose’s intention was to force the sale of GKN to Boeing and even rejected other bidders. GKN and Melrose say that keeping the factory open is «unsustainable.»

Boeing finally had to concede and on Friday, April 26, announced that it was able to close a deal with GKN Aerospace St. Louis and its parent company, Melrose Industries, to continue manufacturing critical components (superplastics and flight control surfaces) for the production of the fundamentals for the F/A-18 Super Hornet and F-15EX.

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The agreement between Boeing and GKN immediately transfers to Boeing the capabilities and operations of the St. Louis facility in support of the F/A-18 and F-15 programs. In addition, nearly the entire GKN St. Louis workforce-approximately 550 people-was hired by Boeing.

“Boeing is growing across the region with a healthy backlog of current programs while also seeking future opportunities,” said Steve Parker, Senior Vice President & Chief Operating Officer of Boeing Defense, Space & Security. “This agreement allows us to not only deliver for our customers, but also gives the highly skilled GKN workforce the opportunity to bring their immense talents to bear in support of the warfighter and the St. Louis defense and aerospace industry. This is a win-win-win for those employees, Boeing, and the broader Saint Louis community.”