Bet there's some sphincters tightening in Olympia this afternoon.

Boeing to build second 787 assembly line in South Carolina

EVERETT -- In a blow to the Puget Sound area, Boeing announced Wednesday it will build its second assembly line in South Carolina. In addition to serving as a location for final assembly of 787 Dreamliners, the facility also will have the capability to support the testing and delivery of the airplanes, the company said.

Boeing evaluated criteria that were designed to find the final assembly location within the company that would best support the 787 business plan as the program increases production rates. In addition to serving as a location for final assembly of 787 Dreamliners, the facility also will have the capability to support the testing and delivery of the airplanes.

The Seattle Times on Wednesday reported that talks between the Machinists union and the company had fallen apart, with Boeing turning down further negotiation.

The company had indicated it wants a no-strike agreement with the International Association of Machinists union, which waged an eight-week strike last year that shut down the company's commercial airplane facilities.

“The Boeing Company’s announcement to locate a second 787 line in North Charleston, S.C., signals that other states want what we have – a strong manufacturing base. We must all work together and fight to keep it," Reardon said in a statement released Wednesday. "Washington state must make a conscious decision to do whatever is reasonably necessary to aggressively compete to keep the jobs we have and grow our economy or risk more losses.

“The loss of the second line of the 787 will most certainly result in finger pointing. I urge all parties to resist that temptation as it is counterproductive and does nothing to further our objective to be the most competitive state in the country.

On Tuesday, the South Carolina Senate approved an economic incentive package that appears tailored to bring a massive Boeing assembly facility to North Charleston.

The full Senate voted 44-0 on low-interest construction bonds and incentives that include a sales tax exemption on fuel used in test flights. To qualify, a company would have to create at least 3,800 full-time jobs and invest at least $750 million in the state over seven years.

Boeing's 787 project has been plagued by delays, parts shortages and last-minute fixes have cost it billions in extra expenses and lost years. That's on top of weak demand for aircraft as air travel and freight shipments take a hit during the economic downturn.

While popular, with 840 orders, the plane was delayed for the fifth time in June. Boeing said parts of the aircraft needed to be reinforced. The aircraft - designed to carry up to 330 passengers in wider seats and aisles - is more than two years behind schedule.

Source: http://www.komonews.com/news/local/67033547.html