Boeing to rescue SC from recession?

boeingplaneThousands of jobs are expected in the wake of a new Boeing assembly plant in North Charleston, SC.

Because the Chicago-based aircraft maker keeps minimal inventory, industry experts said suppliers will need to locate in South Carolina for quick shipments.

“You’ll get a good start to an aerospace cluster,” said Scott Hamilton, a Seattle-area aviation industry analyst.

On Wednesday, Oct. 28th, South Carolina won a new assembly line for the 787 Dreamliner after state lawmakers approved a generous incentives package that included $170 million in bonds and a number of tax breaks. Gov. Mark Sanford will sign the deal at a ceremony on Friday, Oct. 30th in North Charleston, making the contract official.

Boeing also considered the Seattle suburb of Everett, Wash., home to Boeing’s original 787 assembly plant. But the aircraft maker chose the East Coast site after talks broke down between the Machinists union in Washington and corporate officials.

South Carolina is already home to nearly 80 Boeing suppliers and vendors, according to its corporate Web site.

While North Charleston already has a 787 rear fuselage plant, many of those suppliers said they don’t work on the actual Dreamliner. That suggests opportunities for companies to come to support the new assembly line.

To help lure the new assembly plant, the General Assembly approved a massive tax incentive package, part of a host of promises made to Boeing since the company first discussed the possibility of locating in South Carolina in August. The package would eliminate income and other taxes for the company for a decade and provide low-interest construction bonds.

To qualify for incentives, Boeing pledged to invest at least $750 million and create 3,800 jobs in the state within seven years. State officials expect those numbers to increase.

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