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24 November 2010 | Adam Leach
Aerospace giant Boeing has purchased one of its key suppliers of hard metal components for commercial and military aircraft.
The takeover will absorb Summit Aeronautics Group’s facility in Helena, Montana into Boeing’s Fabrication arm. Summit already supplies its new owners with edge frames for the doors on the 787 and main-landing-gear-beams for the 767.
Ross Brogue, vice-president and general manger of Boeing Fabrication, said: “Bringing this successful partner and its talented employees into Boeing provides additional flexibility to support increased production rates. It grows our capacity to manufacture titanium and other hard metal structures in support of current and future airplane production requirements.”
The move to take ownership of one of its suppliers follows comments by Boeing chief executive James McNerney earlier in the year which highlighted the need to increase capacity within the supply chain, as a result of increased demand for aircraft.
Speaking at a conference in July, McNerney said that to meet demand, the firm would need to make sure “that we have properly facilitized [sic] suppliers with the right manning and capability and material commitments to get there”.
Boeing expects the purchase of Summit to be completed within the fourth quarter, at which point they will take control of all assets, operations and inventories. Summit employs 135 people in its manufacturing operation.