NEW YORK Boeing Co (BA.N) has decided to place a significant amount of design work for its coming 777X jetliner in cities outside the Seattle area, where the current 777 was designed and is being built, according to an internal memo reviewed by Reuters and confirmed by Boeing on Wednesday.
"It has been decided that much of the detailed design will be carried out by Boeing engineering teams in Charleston (South Carolina), Huntsville (Alabama), Long Beach (California), Philadelphia and St. Louis," the memo said. "The Boeing Design Center in Moscow will also support the design activity. However, at this time, no decisions have been made about 777X design or build in Puget Sound."
The news comes as Washington state leaders are considering proposing a package of tax incentives to persuade Boeing to put 777X design and assembly work at its giant factory in Everett, Washington, where the current 777 is made, and keep work in the Puget Sound region, which encompasses Everett, Seattle and Renton, where Boeing has facilities.
Washington state officials and congressional members did not immediately respond to requests for comment.
Union officials said they expected some 777X work for the Puget Sound region. Shifting away from the Everett factory, they said, could bring problems similar to those experienced with Boeing's 787 Dreamliner, which has suffered a series of glitches, including unstable, overheating batteries and repeated mechanical failures. Design and parts for the 787 were sourced from suppliers around the globe.
"Puget Sound is Boeing's center of experience in commercial aircraft design," said Ray Goforth, executive director of the Society of Professional Engineering Employees in Aerospace (SPEEA), the union representing Boeing engineers and technicians.
"As engineering tasks are shared with other talented engineering groups, we fully expect Puget Sound to play the key integrating role needed to avoid a replication of the problems experienced by the 787 program."
Boeing has been considering whether to build the 777X at its factory in North Charleston, South Carolina, and is acquiring land adjacent to that factory. But the company reiterated on Wednesday that it has not yet decided where to build the jet.
"We are studying our options on build work for the 777X, but no decisions have been made at this point," Boeing spokesman Doug Alder said.
(Reporting by Alwyn Scott; Editing by Gerald E. McCormick and Tim Dobbyn)