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WICHITA, Kan. ? The Boeing Co., for decades the brand that helped support Wichita's claim as the aviation capital of the world, announced Wednesday it will shut down facilities in the city by the end of 2013 and send work to plants in three other states as it deals with defense spending cutbacks.
The closure will cost 2,160 workers their jobs and end the firm's presence in an area where it has been a major employer for generations.
The decision was not a surprise because Boeing said in November it was looking at closing the Wichita plant. But it still drew an angry response from Kansas lawmakers who helped Boeing land a lucrative Air Force refueling tanker project in February and had expected thousands of jobs to come to Wichita with it. Instead, the tanker work will go to Boeing's facilities near Seattle.
"Boeing's announcement is that things have changed," U.S. Sen. Jerry Moran said. "Well, the only thing that really has changed in my mind in the last year is Boeing now has the contract. When they made the commitments, they didn't."
Mark Bass, a Boeing vice president, said the market for defense work has changed dramatically in the past 18 months and the Wichita facility wasn't competitive because of its size and high labor costs. The site includes 97 buildings with 2 million square feet.
Bass declined to say how much the company expected to save by moving the work elsewhere.
Wichita had hoped the number of jobs at the facility would grow after Boeing won the contract worth at least $35 billion to build 179 Air Force refueling tankers. Modification work on the planes was expected to generate 7,500 direct and indirect jobs with an overall economic impact of nearly $390 million.
Boeing said 24 Kansas-based suppliers for the refueling tanker project will still provide parts as planned.
The first layoffs in Wichita are expected in the second half of 2012. While the Seattle area will build the tankers and handle their modifications, engineering work will move to Oklahoma City and future aircraft maintenance, modification and support will go to San Antonio, Texas.
The three states combined could pick up as many as 1,400 jobs, with Oklahoma City gaining 800 and San Antonio getting 300 to 400. The Seattle area will add 200 tanker construction jobs but about 100 support positions from there will move to Oklahoma City in the shuffle, Bass said. Wichita workers will be allowed to apply for jobs in the other locations.
Boeing said it will continue to have a significant impact on the Kansas economy and its aerospace industry. The Chicago-based company spent more than $3.2 billion with 475 Kansas suppliers last year. Kansas is the fourth largest state in its supplier network.
But that wasn't enough for lawmakers like U.S. Sen. Pat Roberts of Kansas, who said Boeing had promised as recently as February to remain in Wichita if it received the tanker contract. Roberts and others urged the company to reconsider.
Moran called Boeing's move "a blow to our mental health as well as our pocketbooks." Kansas officials are still willing to do what it takes to keep the Boeing plant open, but "it's difficult to negotiate with someone who hasn't kept their word," he said.
Republican Gov. Sam Brownback promised Kansas will pursue opportunities in commercial aircraft manufacturing. Aircraft makers like Cessna Aircraft Co., Hawker Beechcraft and Bombardier still have plants in Wichita, which Brownback said remains "the best place in the world to build airplanes."
Kansas Democratic Party chair Joan Wagnon said the decision shows that throwing money at wealthy corporations doesn't guarantee loyalty or longevity.
"Despite all the economic incentives and tax breaks, of which there were many, and despite the loyalty of Boeing's workers and its long history in Kansas, Boeing turned its back on a community and a state that supported the corporation generously through tough times," Wagnon said.
But the news was welcomed elsewhere.
"The decision of the Boeing Company to move tanker work to Washington is bitter-sweet," said Everett Mayor Ray Stephenson, noting Wichita Mayor Carl Brewer's support for an American-made tanker. "I was grateful for his support and am saddened for the workers and families in Wichita. That said, Everett stands ready to support additional aerospace work in the Puget Sound region."
Brewer, who once worked for Boeing, said the disappointment in Boeing's decision to abandon its 80-year relationship with Wichita and Kansas "will not diminish anytime soon." The city, county and state have invested too many taxpayer dollars in Boeing to take the announcement lightly, he said.
Boeing has had a facility in Wichita since it bought the Stearman Aircraft Co. in 1929.
Employment at the plant peaked during World War II, when its 40,000 workers included President Barack Obama's grandmother Madelyn Dunham, who worked the night shift as a supervisor on the B-29 bomber assembly line.
The company remained Wichita's largest employer for decades after the war.
It still had about 15,000 workers in the city in 2005, when it spun off its commercial aircraft operations in Kansas and Oklahoma. After the divestiture, Boeing kept 4,500 workers for its defense work in Wichita but layoffs have since slashed that number.
Spirit AeroSystems, which took over Boeing's commercial aircraft operations, still makes parts for Boeing in Wichita.
Jeremy Hill, director of Wichita State University's Center for Economic Development and Business Research, said most Boeing workers are likely to stay in the area and find other jobs. But the company's departure is a psychological blow.
"It was something that was very important to people here, something they recognized, something they would tell other people when they came and visited," Hill said. "Boeing has that name that's household and recognized, and it had a value to people when they promote the area."
___
Associated Press writers John Hanna and John Milburn contributed to this report from Topeka.
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Hagen Schroeter, the Director of Fundamental Health & Nutrition Research at Mars, Incorporated, talks about research on bio-active food compounds and the search for why a healthful diet is good for you.
January 5, 2012
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>>> we have more good news to share on the recovery of a texas model who walked into a plane's spinning propeller. lauren scruggs has now taken her first public outing since that accident. we go to plano texas for more. janet, good morning.
>> reporter: carl, good morning to you. you can't blame her for wanting to get out of that rehab center if only for a few hours. and what better mood lifter than retail therapy ? but no large shopping malls or even trendy little boutiques for her first outing. we are told she headed directly to her favorite food store. as her mother describes it it was lauren 's first adventure since that awful accident just four and a half weeks ago. word of the 23-year-old model and fashion blogger choose for her first public outing? she went shopping. not for clothing but to the texas -based grocery store known for its natural and organic products -- whole foods. on the blog where cheryl scruggs has been updating lauren 's process cheryl writes, we love you, whole foods. we had many complete strangers stop us with tears in their eyes saying they've been praying for lo and for our family.
>> hi. i'm lauren scruggs .
>> reporter: the field trip not with standing, lauren 's recovery hasn't been easy. she lost her left hand in the accident and doctors later had to remove her left eye . she labors through hours of physical therapy every day and as her mom reports she is still in considerable pain. on wednesday cheryl wrote, we've had a few tough days, but things finally smoothed out yesterday. so many are following lauren 's story the blog has topped 800,000 hits. well wishers and close friends encouraged by her progress.
>> she is doing phenomenally well. you can't believe it.
>> i think she is going to come back stronger.
>> her friends and neighbors continue to offer support at events like this fundraiser last week to help pay her medical bills. they believe she'll be back action soon. but what is lauren thinking? lauren told her mom her new life isn't what she would have chosen but she understands that this is what god chose for her and she is excited by the possibilities of using the experience to help others. this is a pretty big step for her and it is likely she'll venture out more in the coming weeks. we've also heard lauren has been able to reconnect with many of her friends just within the last week but it's her family, mom, dad, and twin sister who have been the constant by her side during this amazing recovery. carl?
>> a lot of people thinking about her. thank you very much, janet.
Source: http://video.today.msnbc.msn.com/today/45883185/
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YANGON (Reuters) ? British Foreign Secretary William Hague and Myanmar's pro-democracy leader, Aung San Suu Kyi, set out similar conditions for the lifting of sanctions imposed on the country under the previous military regime at an historic meeting on Friday.
Western countries are cautiously renewing ties with the civilian government in place since last March and Hague, in the former Burma for a two-day visit, has set out four conditions for the easing of sanctions.
Those are the release of hundreds of political detainees, an end to human rights abuses by the army, an effort to resolve ethnic conflicts and the holding of free and fair elections.
Asked at a news conference what she wanted to see before sanctions should be lifted, Suu Kyi referred to what Hague, standing beside her, had said the day before.
"All political prisoners should be released and there should be all efforts made to put an end to all ethnic conflict within our country. Certainly we would want to see free and fair by-elections," she said.
At a later news conference at the end of his visit, Hague was asked how quickly he wanted his conditions met.
"My view is they should be completed as soon as possible. It's important to bear in mind the European Union makes an important decision on sanctions in April this year," he said.
The EU reviews sanctions each year. Last April, after the transition to a civilian government, it lifted travel bans and asset freezes affecting a number of top government officials.
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Myanmar Special Report: http://link.reuters.com/jaz65s
Graphic factbox on Myanmar: http://link.reuters.com/dyf65s
Timeline on Aung San Suu Kyi: http://link.reuters.com/cyf65s
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Hague and Suu Kyi spoke to the media on the lawn of her lakeside home, where she spent years under house arrest until her release days after a general election in November 2010.
Scores of journalists were in attendance, photographers and television crews scrambling to get shots of them as they strolled around the grounds after their talks.
"I hope we're at a stage where we can say a long-held dream now has a chance of being realized, but there's so much work to be done. The long darkness in which the people of this country have lived may be coming to an end," Hague said.
He is the first foreign minister from the former colonial power to visit Myanmar since 1955. The army seized power in a 1962 coup and remains the country's most powerful institution.
BALANCING ACT
The new civilian administration quickly embarked on political and economic reforms last year, to the surprise of many, given the number of former junta officials in its ranks.
Other developed countries are cautiously seeking to engage with Myanmar's new rulers, keen to improve living conditions in the country but also to let their companies invest in its rich natural resources, which are already being exploited by Asian countries such as China, Thailand and India.
Two Yangon-based sources said on Friday Myanmar had awarded 10 onshore oil and gas blocks to eight firms in its biggest energy tender in years and was offering nine offshore blocks.
The winning firms were mostly from Asia, the sources, with direct knowledge of the deals, told Reuters.
At his closing news conference, Hague stressed that political and economic reform went hand in hand.
"It's essential for the economic future that the political process for democracy is maintained and completed. Only then will there be an economic relationship with the European Union and United States and only then will foreign investors have the confidence to invest here," he said.
Hague is in a tricky situation, wanting to encourage the reformers led by President Thein Sein but liable to face criticism at home if he seems to be cozying up to former junta members, including Thein Sein, still pulling the strings.
"I think they're sincere, particularly the president," Hague
said earlier.
"The risk of how foreign governments engage with this is that we assume it's all done and forget that this is only part way through," he added. "We must not relax our efforts prematurely. That's the risk we must guard against."
Suu Kyi, the daughter of the leader of the campaign for independence from Britain, is important because of her influence at home and abroad.
Analysts and diplomats say that if she withdrew her long-standing support for sanctions, that would make it easier for Britain and others to scale down the embargoes.
Suu Kyi has shown a willingness to compromise and plans to run for parliament in by-elections on April 1.
The new government may be happy to see her there: Suu Kyi and her party will give the assembly more legitimacy but it will still be controlled by an army-dominated party plus military representatives who have a quarter of the seats.
The authorities formally registered her National League for Democracy (NLD) as an authorized party on Thursday.
Hague met members of the former junta now running the nominally civilian administration in the capital, Naypyitaw, on Thursday, urging them to release all remaining political prisoners and ensure the by-elections were fair.
U.S. Secretary of State Hillary Clinton made a landmark visit to Myanmar late last year, seeking the same reforms and offering similar concessions.
On Thursday, the European Union said it planned to open a representative office in the main city, Yangon.
Britain expressed guarded optimism after the release of 230 political prisoners last October but as many as 600 may remain behind bars.
(Additional reporting by Aung Hla Tun, and Niluksi Koswanage in Kuala Lumpur; Writing by Alan Raybould; Editing by Robert Birsel)
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