Boeing Boosts 787 Production with US$1 Billion Investment by 2026

Boeing has announced a US$1 billion investment to expand production of its 787 Dreamliner widebody jets, as the company aims to meet its goal of producing 10 aircraft per month by 2026. This initiative will focus on the company's Charleston County, South Carolina, facility and includes infrastructure upgrades, along with the creation of 500 new jobs over the next five years.

The announcement was made in partnership with the South Carolina Department of Commerce. Boeing stated that the investment would "lay the groundwork for potential future rate increases driven by market demand," noting the widebody market’s sharp recovery following a prolonged slowdown.

This move is partly in response to competitive pressure from European rival Airbus, which recently outlined plans to scale up A350 production to 12 per month by 2028. Boeing's decision to ramp up its 787 production aligns with a broader market resurgence as airlines renew widebody capacity to meet the growing demand for international travel.

Boeing’s strategy follows several challenges this year, including a strike that delayed production of most of its aircraft, except for the Dreamliner, and supply chain disruptions impacting components like seats and heat exchangers. As a result, Boeing is targeting a return to producing five 787s per month by the end of 2024, a reduction from earlier production levels this year. However, the company has recently achieved a production rate of five per month in the last quarter of 2023.

Boeing’s focus on increasing output is aimed at generating cash after facing operational setbacks. The US$1 billion investment includes modernizing infrastructure at its South Carolina plant to support the Dreamliner production ramp-up. These infrastructure improvements are expected to support long-term growth and enhance operational flexibility to meet fluctuating market demands.

"We are focused on building the foundation for future growth and ensuring that our production system is optimized to meet market demand for widebody aircraft," said Boeing.