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“Boeing Considers Repurchase of Troubled Supplier: Spirit AeroSystems”

Boeing Supplier Spirit Surges on Tentative Deal in Parts Dispute – Bloomberg

Boeing is considering the repurchase of Spirit AeroSystems, its troubled supplier, after divesting it nearly two decades ago. The potential multibillion-dollar deal aims to address quality issues and regain control over manufacturing processes, particularly regarding fuselage sections for the 787 and 737 MAX jets. This move reflects a shift in Boeing’s strategy, acknowledging previous overreliance on outsourcing and divestments. The acquisition discussions coincide with Spirit’s talks with Airbus regarding the sale of its Belfast plant, which manufactures wings for Airbus’s A220 jet. While Boeing’s interest in Spirit underscores its crucial role as a supplier, the complexity of the deal is highlighted by Spirit’s diversified business supplying other aircraft-makers and defense contractors. Reacquiring Spirit would likely involve divesting facilities supplying Airbus and other customers, presenting challenges in finalizing the agreement.

#Boeing #SpiritAeroSystems #AerospaceIndustry #Manufacturing #BusinessStrategy

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