Dec 06, 2017, 13:00 ET
WICHITA, Kan., Dec. 6, 2017 /CNW/ -- Spirit AeroSystems [NYSE: SPR] today announced plans for major expansion and growth, including the addition of 1,000 jobs and capital investments totaling $1 billion over the next five years at its Wichita, Kan., facility. The growth is fueled by a number of factors: increasing production rates on existing commercial aircraft programs, growth in Spirit's Fabrication and Defense businesses and other new business pursuits. The announcement solidifies Spirit's presence in Wichita and Kansas for decades to come.
"Wichita is our headquarters and the hub of our operations," said Spirit President and CEO Tom Gentile. "Our workforce is unparalleled, with generations of aircraft employees who have worked in our plant. And now future generations will have those same opportunities. We are proud to partner with the city, county and state to bring new jobs and investment to the community and help ensure Wichita remains the Air Capital of the World."
"For years Kansas has played a powerful role in the global aviation industry, and today's announcement ensures that we will continue to do so for years to come," said Kansas Lieutenant Governor Jeff Colyer. "Spirit AeroSystems' $1 billion investment marks one of the largest economic development projects in Kansas history and will result in great career opportunities for over a thousand Kansans. I am thrilled that we were able to bring this project to fruition with our incredible partners at Spirit, and I look forward to seeing the impact their investment will have both on Wichita and the state as a whole."
"These are high-paying, highly coveted aviation jobs," said Wichita Mayor Jeff Longwell. "They will pump billions of dollars into our local economy over the next decade and beyond. Spirit is a great company, a wonderful community steward, and we worked very collaboratively to ensure they chose Wichita for this expansion."
The memorandum of understanding (MOU) with the city and Sedgwick County includes joint investment in a new building to be constructed on the north side of Spirit's property. The completion of the transactions contemplated by the MOU is contingent on approval by the Wichita City Council and the Sedgwick County Commission and the execution of definitive agreements between the parties.
"We are excited to work with Spirit on this project for our community. It's a tremendous win for Sedgwick County and all of us in south-central Kansas, including the dozens of aviation suppliers here," said Sedgwick County Commission Chairman Dave Unruh. "It is further validation of the county's investment in the National Center for Aviation Training more than a decade ago as this community is uniquely equipped to help Spirit tackle the demands for a ramp-up of this magnitude."
The majority of the new job creation will be in the hourly ranks, including skilled sheet metal mechanics, composite technicians and CNC machine operators.
"Spirit is a global company with sites across the world, and we will continue to grow where it makes sense for the business. We have deep roots in Wichita, and we are here for the long-haul," Gentile said.
On the web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in the U.S., U.K., France and Malaysia. The company's core products include fuselages, pylons, nacelles and wing components for the world's premier aircraft. Spirit AeroSystems focuses on affordable, innovative composite and aluminum manufacturing solutions to support customers around the globe. More information is available at www.spiritaero.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements reflect our current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "goal," "forecast," "intend," "may," "might," "objective," "plan," "predict," "project," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus' production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of potential changes in tax law, such as those outlined in recent proposals on U.S. tax reform; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain highly-skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and borrowing facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our existing senior revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; and 30) exposure to potential product liability and warranty claims. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
SOURCE Spirit AeroSystems
For further information: Fred Malley, (316) 523-1233, [email protected], http://www.spiritaero.com
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