CHICAGO (KSNW & AP) — Boeing will halt production in January of its 737 Max airliner that has crashed twice and has been grounded since March.
The Chicago-based company said production would halt at its plant with 12,000 employees in Renton, Washington, near Seattle.
Boeing said it doesn’t expect any layoffs as a result of the production halt “at this time.” But layoffs could ripple through some of the 900 companies that supply parts for the plane.
There is no information as to how this halt in production will impact Spirit employees in Wichita.
“We are working closely with our customers to determine what that means for Spirit. As decisions are made on how to best mitigate this additional impact, we will communicate any new information to employees and other stakeholders,” said Keturah Austin, Spirit AeroSystems.
The Max is Boeing’s most important jet, but it has been grounded since March after crashes in Indonesia and Ethiopia that killed a total of 346 people.
In a statement, Boeing said it will determine later when production can resume.
“We believe this decision is least disruptive to maintaining long-term production system and supply chain health,” the statement said.
The company’s stock came under pressure Monday after the Wall Street Journal reported on the possibility of a Max production halt.
Shares of Boeing Co. closed Monday down $14.67, or 4.3%, at $327.
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