Paul Lewis/ST LOUIS Graham Warwick/WASHINGTON DC
Boeing should complete its $3.75 billion acquisition of Hughes Electronics' satellite manufacturing business on 6 October, following US and European Union approval of the deal. The US Federal Trade Commission cleared the purchase of Hughes Space & Communications after Boeing agreed to establish firewalls between its satellite and launch vehicle units.
The new satellite entity will operate as a wholly-owned subsidiary, Boeing Satellite Systems. The firewalls are meant to maintain competition by ensuring confidentiality both of information supplied to Satellite Systems by competing launch service providers, and to Boeing's Expendable Launch Systems unit by competing satellite manufacturers.
Boeing will also be barred from providing engineering services to the US Department of Defense for classified programmes.
Lockheed Martin is meanwhile combining its Integrated Business Solutions (IBS) unit with its Global Telecommunications (LMGT) subsidiary. IT outsourcing specialist IBS was earmarked for disposal, but will be combined with satellite network service provider LMGT to create a single business, with the aim of spinning off the combined entity. LMGT says talks are under way with likely partners.
• Boeing is close to agreeing the sale of its St Louis-based composites and machines parts business to an unnamed strategic partner. "We're very close to completing a deal that will strike a balance between reducing the cost of parts for our aircraft and at the same time have a company buy our facilities, stay here in St Louis and keep the vast majority of our employees," says Boeing president military aircraft and missiles, Gerry Daniels.
Around 10% of Boeing's 17,000-strong workforce in the city will move to the new company, while 300 jobs will be lost. The disposal, plus the sale of other facilities to St Louis airport, will cut 186,000m² (2 million ft²), or 20% of floor space.
Daniels says the buyer will be "an existing player in the aerospace market". Terms include a 5-year supplier commitment from Boeing, resulting in a "very significant" reduction in cost.
Boeing's remaining St Louis business will focus on "final assembly, integration and test", with the $140 million addition of 32,500m² to its existing F/A-18E/F facility and a new high bay building to relocate T-45 assembly, AV-8B remanufacturing and C-17 subassembly work. Should it win the Joint Strike Fighter competition, Boeing will also spend $110 million on a37,000m² site. It will lease back its older factory from the airport to complete production of 10additional F-15Es.
Source: Flight International
