ST. LOUIS – Boeing reached an agreement with GKN Aerospace St. Louis and its parent company, Melrose Industries, to ensure continued production of critical parts for the U.S. government and its allies. Financial details of the deal were not disclosed.
This agreement brings the St. Louis facility, along with its capabilities and workforce dedicated to the F/A-18 and F-15 programs, back under Boeing’s control. Nearly all 550 employees from the GKN St. Louis site have been hired by Boeing.
This move comes after Melrose Industries, facing profitability issues, planned to close the facility by the end of 2022. Boeing responded with a lawsuit in December of that year, claiming GKN was violating a contract to supply parts for the fighter jets (as reported by the St. Louis Post-Dispatch). This acquisition resolves the legal dispute between the two companies.
Interestingly, the unit was originally sold to GKN in 2001. At that time, around 1,200 Boeing employees transferred to GKN.
The acquisition of the GKN facility could be a strategic move for Boeing to gain tighter control of its supply chain. The company is also currently in talks to purchase another former Boeing asset, Spirit AeroSystems, which would further strengthen its manufacturing base.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
