This particular contract is for defense planes for the government of Brazil. Keep in mind that Boeing routinely negotiates as a part of getting planes sold to other nations, having parts manufacture and other work done for each contract in that nation, as well as parts manufacture and other work done for other contracts. Pretty much, whatever it takes to make a sale, appears to be the customary rule.
Do you recall when Boeing fired many of their machinists, a decade ago and then had the parts manufactured in China? The result was the few machinists left in the U.S., (I heard from some in the Seattle area), that the parts were so bad that the U.S. machinists were having to re-machine them before they could be used in the building of Boeing planes.
Do you also recall when Boeing decided to move certain composite manufacturing processes to China? It didn’t take long before China announced they were going to compete in the manufacturing of aircraft in competition with Boeing and others. Amazing how fast technology can be stolen given proxmimity and poor security. There has been more than one event of improper transfer of classified technology to foreign interests brought about by poor business or security practices by Boeing, meaning loss of U.S. defense technology and “edge.”
Remember these and other examples of Boeing outsourcing the next time you hear the argument that Boeing should get the government defense contract “because they are a U.S. Company who uses local U.S. workers. Please see other previous posts about other outsourcing of Boeing work to the detriment of U.S. workers. -GFS
From Tulsa World
Boeing pursues contract for warplane in Brazil
by: Associated Press
Saturday, July 11, 2009
7/11/2009 4:15:22 AM
Boeing Co. says it’s prepared to have Brazilian manufacturers supply a “big portion” of components for its Super Hornet jetfighter in order to sell 36 of the warplanes to the South American nation.
The move could create as many as 5,000 jobs in Brazil.
Jim Albaugh, head of Boeing’s defense unit, said agreements have been signed with 27 Brazilian companies that are capable of producing parts for the F/A-18, including Empresa Brasilieira de Aeronautica SA, the world’s fourth-largest airplane maker.
Should Brazil buy the jet from Boeing, it will create opportunities for suppliers beyond defense, Albaugh said.
“A big portion of the F-18 will be built here,” he told Bloomberg news Friday during an interview in Brasilia. “For every dollar that goes toward that airplane, that money will come back to Brazil as manufacturing, software, avionics, and electronics.”
Brazil is beefing up its military after years of neglect and also is seeking to rebuild its arms export industry.
Chicago-based Boeing is competing in Brazil with Saab AB, the Swedish maker of the Gripen warplane, and Paris-based Dassault Aviation SA, which is pitching its Rafale.
Brazilian President Luiz Inacio Lula da Silva is expected to award a contract, which analysts say could be worth as much as $4.5 billion, as early as next month.