Boeing (BA) - Get Report said Monday that it will temporarily suspend its production operations at its Puget Sound area facilities in light of the state of emergency in Washington related to the coronavirus pandemic.
Shares of the Chicago-based planemaker were climbing 6.4% to $101.09.
Boeing said it planned to begin reducing production activity Monday and projected the suspension of operations to begin on Wednesday at sites across the Puget Sound area. The suspension will last 14 days, the company said.
During this time, Boeing said it will conduct additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work.
Puget Sound area-based employees who can work from home will continue to do so, Boeing said. Those who cannot will receive paid leave for the initial 10 working days of the suspension - double the company policy - which will provide coverage for the 14 calendar day suspension period.
"This necessary step protects our employees and the communities where they work and live," President and CEO Dave Calhoun said in a statement. "We continue to work closely with public health officials, and we're in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension."
A Boeing worker in Washington state battling the coronavirus died over the weekend, marking the first death among the aircraft maker’s infected employees, the Seattle Times reported.
Goldman Sachs analyst Noah Poponak earlier Monday upgraded shares of Boeing to buy from neutral and raised his one-year price target to $173 on expectations that air traffic will jet back to normal once the global pandemic abates and people begin traveling again.