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7E7 Made In Asia?

Mon May 24, 2004 11:16 am

I've been hearing this a lot from businessmen that the 7E7 will be assembled in Asia rather than Witcha or Everett. Any truth to this?
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RE: 7E7 Made In Asia?

Mon May 24, 2004 11:21 am

The 7E7 will be made near Seattle. Many cities across the US submitted bids for the plant. The Seattle area won. It was announced late last year.

Many of the components will be made in Asia.
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RE: 7E7 Made In Asia?

Mon May 24, 2004 11:23 am

Why don't they just make it at Everett?
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RE: 7E7 Made In Asia?

Mon May 24, 2004 11:29 am

It is being built @ Everett along side the 777,747,767 (at least 'til that line closes anyway)
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RE: 7E7 Made In Asia?

Mon May 24, 2004 11:39 am

That makes more sense. Otherwise, I was thinking Boeing decided to jump onto the outsourcing game...
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RE: 7E7 Made In Asia?

Mon May 24, 2004 12:00 pm

You heard sort of correctly. Much of the airplane will be fabricated in Asia (especially Japan) and it will be snapped together in Everett. Relative to other Boeing types, more value will be added in Asia than in the United States.

Some of the Japanese subcontractors will ship completed fuselage sections with wiring and other items already installed. I believe this is a manufacturing innovation.

[Edited 2004-05-24 05:07:23]

[Edited 2004-05-24 05:11:39]
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RE: 7E7 Made In Asia?

Mon May 24, 2004 1:18 pm

My two cents.....(Haven't been here for a while)....this is not a rocket science idea......but,

The concept of outsourcing is somewhat close probably.... but, I remember thinking about this almost ten years ago when the Boeing and Airbus competition was heating up....there was a lot of neck in neck competition between the two companies to get orders for a/c..... and I noticed that large contracts where being given to, China for instance,.... and then China ordered Boeing over Airbus.... in other words, giving a country a piece of the manufacturing pie also encourages them to order a/c from the company for which they are manufacturing. Make sense?

Another factor in the equation of awarding contracts. I think it's a very common occurrence in manufacturing from washing machines to airplanes.
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RE: 7E7 Made In Asia?

Mon May 24, 2004 3:34 pm

A recent article in Aviation Week & Space Technology states

"Although Boeing and ANA gave a "list price" for the order at $6 billion, or $120 million per aircraft, industry executives in Tokyo said the true value was much lower and suggested the order was accompanied by significant discounts made possible by "buy ins" from the supply network that Boeing has stretched around the globe. Prominent on that list are Japan's three biggest aerospace manufacturers, which are collectively responsible for producing 35%(my emphasis) of the total 7E7 assembly, including most of its wing and parts of its fuselage. Spokesmen said the industrial connection was "not the reason ANA ordered."

Another quote states that 65% of the aircraft is from outside Boeing. Yet another states that large amounts of the composite work was given to particular Japanese companies because of their extensive experiance in composites from their "bullet train" manufacturing.

I am sorry but I cannot find my definitive guide that showed the worldwide breakdown of contributing companies that also include the Rolls Royce engines and France's own Dassualt for computer design systems Catia.

Boeings Seattle assembly personnel will only increase some 800 to 1200 total but 2nd and 3rd party groups, including from overseas, may well build in the area as well.

And of course the very large percentage of Asian contributors was precisely why so many A.netters predicted an initial order from that region.

If you spread the risk you can share the damage, costs - and profits in a true world wide economy.

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