International Aerospace giant The Boeing Co. (BA) said that it has broken ground on another assembly line for its much awaited 787 Dreamliner at its production facility in Salt Lake City, Utah. This new assembly line follows the assembly line in North Charleston, South Carolina, which was inaugurated by the company earlier this month.
The new assembly facility in Utah will manufacture the vertical fin assemblies for 787 Dreamliners that are built at Boeing South Carolina facility. At present the company has 835 net orders for its 787 Dreamliner and its customers are eagerly waiting for the delivery of the airplanes that are behind schedule by three years.
Boeing utilized the Lean Manufacturing techniques to design and built the new manufacturing line. The new assembly line will cover an area of 35,000 square feet and the techniques used will not only reduce floor space but also improve the production capacity without adding any extra unit physically.
The Boeing is scheduled to deliver the first 787 Dreamliner to its customer in August. Keeping in tune with this, the new production plant that is expected to start production in July will enhance the efficiency of the final assembly and delivery process at Boeing's 787 facility in South Carolina.
In its first quarter earnings conference call, Boeing predicted its commercial airplanes sales revenue to lie within the range of $36 to $38 billion in 2011, while the total commercial aircraft deliveries in the range of 485 to 500 airplanes, including first delivery of 787 and 747-8 airplanes.
We believe the decision to open a new assembly plant comes at an appropriate time when Boeing’s this aircraft has already gone through some critical tests before being approved for delivery.
The Boeing Co., based in Chicago, currently has a Zacks #3 Rank (short-term Hold rating). We also maintain a long-term Neutral rating on the stock. The company competes with Peers such as General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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