On December 12, 2024, Boeing revealed plans to invest $1 billion to significantly expand operations at its facility in South Carolina. This ambitious initiative aims to enhance the production of the Boeing 787 Dreamliner series, a critical part of Boeing’s commercial aircraft portfolio.
The announcement comes on the heels of Boeing filing permit applications to double its production output of the Dreamliner in the region. Under the new plan, Boeing intends to create 500 new jobs over a five-year span, offering a boost to the local economy while upgrading its infrastructure.
Earlier in 2024, Boeing faced significant challenges as a result of a major worker strike that brought production of all aircraft to a standstill, with the exception of the Dreamliner. In the month of October, Boeing only managed to deliver a mere 14 airplanes, highlighting the necessity for this expansion as Boston seeks to regain its competitive edge in the aerospace market.
Boeing’s South Carolina facility currently strives to increase its monthly production of the Dreamliner from four units to ten units by 2026. This follows a reduction in output earlier this year due to supply chain delays affecting critical components like seats and heat exchangers. The production ramp-up is crucial, as before the pandemic, the facility was operating at a rate of five units per month.
Boeing’s South Carolina site, which opened in 2011, is pivotal for the manufacturing of Dreamliners, where the complete cycle of production takes place. The facility spans 1.2 million square feet and functions as both an assembly line and a delivery center for the 787-8, 787-9, and 787-10 models.
Boeing’s decision to expand comes amidst a competitive landscape. Airbus, Boeing’s primary competitor, is planning to increase production of the Airbus A350 to 12 aircraft per month by 2028. Despite a series of supply chain issues, Airbus plans to deliver 770 aircraft in 2024, while Boeing is projected to deliver only 395 commercial jets.
In addition to the expansion of the Dreamliner program, Boeing has confirmed that its upcoming Boeing 797 medium-sized passenger jet will be produced in Washington State, not South Carolina, which has raised questions about the future direction of the company. Airline preferences appear to lean towards Airbus in recent orders, with a reported 139 net orders for the A350 compared to just 33 gross orders for the 787.
Boeing’s $1 billion investment aims to position the company to meet rising demand for its Dreamliner series amid increasing global travel. As it seeks to enhance production while battling supply chain issues and competition, the success of this initiative will be critical for Boeing’s recovery and growth in the coming years.
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