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 his career at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet became central to defense research, he helped design the company’s Forecast Intelligence Center and now coordinates the FI Market Recap newsletters for clients. He also manages two blogs: Defense & Security Monitor, which covers defense systems and international security issues, and Flight Plan, focused on commercial aviation and space systems.
For more than 30 years, Richard has authored Defense & Aerospace Companies, Volume I (North America) and Volume II (International), providing detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database tracking all companies involved in programs covered by the FI library. Richard currently serves as Manager of the Information Services Group (ISG), which develops outbound content for both Forecast International and Military Periscope.
