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Boeing Sells Canadian Plant

The company cites the need to focus on building planes.
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Boeing (BA) - Get Free Report completed the sale of its Arnprior, Ontario, plant to a unit of supplier Consolidated Industries.

Terms weren't disclosed, but Chicago-based Boeing said the operations in Arnprior include 370 employees. Employees were told in August 2004 that Boeing would explore options for the site, and a tentative sale agreement with Arnprior Aerospace was announced in August 2005.

Within Boeing, the Arnprior site had been part of Boeing Canada Technology Ltd., a wholly-owned subsidiary of Boeing Commercial Airplanes. The site supplies precision-machined metal detailed parts and sheet metal subassemblies, including complete electrical and electronic tray and shelf rack assemblies for all Boeing jetliners.

The transaction includes a long-term, single-source supply agreement for all parts and assemblies currently produced for Boeing at the Arnprior facility.

Ross R. Bogue, vice president and general manager of Boeing Commercial Airplanes Fabrication, said the sale of the company's Arnprior operations fits with Boeing's strategy to focus Commercial Airplanes operations on large-scale systems integration activities.

"This sale will allow employees to work for a company with a business strategy that fits with the work done at the Arnprior site, providing greater growth potential for those employees," he said. "Boeing will benefit from lower procurement costs, which, ultimately, will improve the value of our products and benefit our airline customers."

Consolidated Industries is a supplier of forgings to Boeing and other large aerospace companies. The company is headquartered in Cheshire, Conn., and it is an operating affiliate of American Industrial Acquisition, which controls a portfolio of manufacturing businesses in seven U.S. states, Canada, France, the United Kingdom, the Netherlands and Sweden.

On Monday, Boeing was set to open at $66.02.