India's $4.1bn C-17 order extends life of Long Beach factory

07 Jun 2011

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Boeing Co's struggling jet-manufacturing complex in Long Beach, California, received a big boost with the Indian government announcing its decision to purchase as many as 10 C-17 Globemaster III heavy-lift transporters, with possibility of the order extending by another six. Of these six options the Government of India has already firmed up four.

Boeing's C-17 Globemaster IIIThe order keeps the Boeing facility at Long Beach functioning for another year.

The order is worth $4.1 billion in aircraft costs and is also the biggest defence contract with a US company. With spare parts and other equipment it is potentially worth much more.

The Long Beach facility has orders that will keep it operational till December 2013. The GoI order should keep the factory in operation through 2014, Boeing spokesman Jerry Drelling said.

According to Boeing, the two governments need to sign a letter of acceptance, which formality the company expects to be completed by the end of the week.

"We're still waiting on the signatures, but the deal is 99.9% done," said Stan Klemchuk, president of the United Aerospace Workers Local 148, which represents 1,600 workers at the Boeing factory. "Folks are buzzing in Long Beach. It gives us one more year of work and couldn't come at a better time."

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