Boeing To End C-17 Globemaster III Production In 2015

Boeing Company announced that it will end production of its C-17 Globemaster III military cargo jet and close the final assembly plant in Long Beach in 2015, citing a difficult environment amid government spending cuts.

“Our customers around the world face very tough budget environments. While the desire for the C-17′s capabilities is high, budgets cannot support additional purchases in the timing required to keep the production line open,” Dennis Muilenburg, president and chief executive officer of Boeing Defense, Space & Security, said in a statement. 

Last week, the Long Beach plant delivered the last of 223 C-17s produced for the U.S. Air Force. Nan Bouchard, Boeing vice president and C-17 program manager, said the company will complete 22 final aircraft: seven for the Indian Air Force, two for an international customer that she declined to name, and 13 that have not yet been sold.

Boeing is expecting the announcement to result in a charge of less than $100 million this quarter, and that will not impact financial guidance for the year.

“The impact will begin in early 2014, and because of the length of time it takes to build the C-17, it will continue through the closure of fourth quarter 2015,” said Boeing's spokesperson.