automotive

Boeing Is Investing IDR 16 Trillion To Boost The Production Of The 787 Dreamliner Aircraft

Boeing plans to invest $1 billion (approximately IDR 16 trillion) to enhance the production of its wide-body 787 Dreamliner jets. This initiative aims to achieve a previously set production target of 10 units per month by 2026. In a joint announcement with the South Carolina Department of Commerce on Friday, December 13, 2024, the American aircraft manufacturer intends to expand its operations at its facility in Charleston County, South Carolina, through this investment, which will also create 500 new jobs over the next five years.

Boeing stated, "This investment and expansion lay the groundwork for potential future rate increases driven by market demand." The company faces competition from European rival Airbus, which has announced plans to ramp up A350 production to 12 units per month by 2028. Following a prolonged hiatus, demand for wide-body aircraft has surged as airlines seek to upgrade their capacity in response to the rising demand for international travel. Boeing is striving to boost aircraft production to generate the necessary revenue, particularly after a significant strike this past fall halted the production of all aircraft except for the Dreamliner.

Boeing's announcement reaffirms its earlier target of producing 10 Dreamliners per month, which was initially revealed during the company's investor day in 2022. Achieving this target would represent a substantial increase for the manufacturer, especially considering the current production levels and the challenges Boeing faces with production quality issues. The company has been working to restore 787 production to five units per month by the end of 2024, following a reduction earlier this year due to supply chain delays in acquiring seats and heat exchangers. Boeing reported that its 787 production rate was five per month during the last quarter of 2023.

Tag: American Aircraft Manufacturer Boeing