Boeing and Mitsubishi Heavy Industries Reach Agreement on Cost Reduction for 787 Production

Boeing and Mitsubishi Heavy Industries (MHI) have signed an agreement to strengthen collaboration in ways that will enhance both companies' competitiveness.

The agreement includes efforts to reduce costs in MHI production of wings for the 787 Dreamliner and joint studies of advanced aerostructure technologies for future-generation commercial aircraft. MHI manufactures 787 composite wings at its factory in Nagoya.

 The agreement aims to enable sales by pursuing increased efficiency in MHI's production system and its supply chain through lean production methods, automation and other activities.

"This agreement advances the strong relationship between Boeing and MHI through joint efforts to reduce cost and improve efficiency, with a focus on MHI's production for the 787 Dreamliner," said Boeing Commercial Airplanes President and CEO Kevin McAllister. "Collaboration with suppliers is at the heart of our Partnering for Success efforts, positioning our companies to win in today's competitive marketplace and look ahead to future opportunities."

MHI's work statement for Boeing Commercial Airplanes also includes fuselage sections for the 767, 777 and 777X programs. In total, about 150 Japanese companies are suppliers to Boeing across its commercial and defense product lines. Boeing procures approximately $5 billion worth of goods and services from Japan every year, and Boeing-related work supports tens of thousands of highly skilled aerospace jobs in the United States and Japan.

"We are delighted to be enhancing the competitiveness of our commercial aircraft business with this agreement," said Shunichi Miyanaga, President and CEO of Mitsubishi Heavy Industries. "We have built our partnership with Boeing over more than 40 years, collaborating on various aircraft programs including the 737, 747, 767, 777, 787 Dreamliner and state-of-the-art 777X and look forward to cooperating to explore future opportunities."

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