The state will take production of 787 if Boeing breaks tax

Workers cross a road on April 29, 2020, near the Boeing 737 MAX factory in Renton, Washington. (Photo by Stephen Brasher / Getty Images)

The Wall Street Journal reports that Boeing will likely strengthen its 787 Dreamliner assembly in South Carolina in a move that will eliminate 787 production in the Puget Sound area.

The WSJ reports that it is not clear on the timeline or how many employees will be affected by the decision. As soon as an announcement could come this week, sources told the WSJ.

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Washington State Government j. Jay Inslee released a statement following these reports on Wednesday. He said that if the report is true, Boeing is “turning its back” on workers and “the best place in the world to build airplanes.”

Inslee says that if this is true, the state would be forced to review its partnership with the Boeing company, including a look at “the company’s favorable tax treatment”.

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The governor says that he and his office have reached out to Boeing several times in recent weeks to ask what the state needs to do to keep 787 production in Washington, but have received no response.

Read the statement of the government

If the Wall Street Journal report is accurate, Boeing will make its return to the world’s best workers and the best place to manufacture airplanes. Washington State has supported the company with a well-trained workforce, a strong supply line, unique infrastructure, world-class research institutes and the best business climate in America. If this report is true, it will force a review of that partnership, including a closer look at the company’s favorable tax treatment.

While Washington will have more than 70,000 aerospace employees, the move could endanger as many as 1,000 Washington jobs.

We have asked the Boeing Company several times what it needs to keep 787 production in Washington. We haven’t heard anything. Nor have we heard anything about how to start this work when the situation improves. The move would signal short-term gains and loyalty to Wall Street – a vision for quality, safety and the future of the industry.

Washington State is the best place in the world to make airplanes. The Boeing Company still has a large presence, amid an innovative aerospace sector that includes some of the best workers anywhere and hundreds of businesses that are part of a high-quality supply chain. The future is here.

I am ready to work with the Boeing Company to keep production here, and with the workforce regardless of the outcome to ensure that we keep a strong aerospace field alive in Washington State.


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