Boeing Co today said it would close a plant in Wichita that maintains and converts planes for the military, by the end of 2013, in a bid to cut costs amid tightening of US defence budget.
The Chicago, Illinois-based company will close Boeing Defence, Space & Security (BDS) facility in Wichita, which currently employs more than 2,160 people.
The decision comes amidst US decision on more cutbacks in defence spending, with moves by the Congress and the Obama administration to tighten federal spending on weapons procurement in the coming decade.
The US military is bracing for $450 billion in additional reductions through 2021 and Defense Secretary Leon Panetta will present results of the Pentagon's strategic review of its roles and missions worldwide tomorrow.
"The decision to close our Wichita facility was difficult but ultimately was based on a thorough study of the current and future market environment and our ability to remain competitive while meeting our customers' needs with the best and most affordable solutions," said Mark Bass, vice president and general manager for BDS' Maintenance, Modifications & Upgrades division.
Boeing Wichita is the base for the company's Global Transport and Executive Systems business and its B-52 and 767 International Tanker programmes. The facility also provides support for flight mission planning and integrated logistics.