AEROSPACE INDUSTRY MARKET
UPDATE
October 2013
McIlvaine Company
TABLE OF CONTENTS
Boeing Extends Cleanroom Lease through 2021
Boeing to Open Center in Brazil
The Boeing Company recently signed a lease extension to maintain a presence in Heath, Ohio until October 2021 with an option through the year 2028.
The Heath-Newark-Licking County Port Authority has signed an agreement with Boeing which will extend Boeing’s current lease with the Port Authority for cleanroom and advanced manufacturing space at the Central Ohio Aerospace and Technology Center in Heath through 2021 with an option through 2028.
The lease provides fixed, low lease rates to Boeing and contains no early termination clause, unlike the previous lease extension signed in 2009.
Boeing provides maintenance, repair, and overhaul services for aerospace inertial guidance and navigation systems and radar antennae. Boeing’s presence in Heath dates back to 1996 when it won the contract for the nation’s first privatization-in-place of a military installation--the former Newark Air Force Base.
“We are very pleased to have a long-term lease agreement in place with the Port Authority,” says Ellen Power, Boeing Center Director and Heath Site Executive. “This agreement will position Boeing for future work opportunities, and will enhance our commitment to the Heath community.”
Boeing is among the largest manufacturers in Licking County and Central Ohio. Boeing leases the main building at COATC and is the anchor to the Port Authority’s Aerospace Center campus. Combined, the aerospace companies on the original Air Force Base campus employ 775 people with an over $60 million annual payroll.
“More than a lease document, this is an extraordinary public-partnership with Boeing that has been a true, national success story,” says Heath-Newark-Licking County Port Authority President and CEO Rick Platt. “Though this long-term commitment to continuing our partnership is certainly great news for Boeing and the Port Authority, I like the future stability that this extension brings to the skilled workforce, the community, and the region.”
The Port Authority owns and manages the Central Ohio Aerospace and Technology Center in Heath and is the largest self-sustaining port authority in Ohio. The Port Authority's ISO 7/Class 10,000 cleanroom space is LEED Certified.
Boeing announced that it will establish Boeing Research & Technology-Brazil, a research and technology center in Sao Paulo that will work with the country's leading researchers and scientists to develop aerospace technologies.
Boeing Research & Technology-Brazil, which will open later this year, will serve as a hub for collaboration between Boeing and Brazilian R&D organizations, including government agencies, private-sector companies and universities.
"Boeing is defined by its technological edge, and establishing Boeing Research & Technology in Brazil will bring new ideas and innovative processes to our company," said Donna Hrinak, president of Boeing Brazil. "We also will strengthen our relationship with Brazil's R&D community in ways that grow Brazil's capabilities and meet the country's goals for economic and technology development."
Areas of research focus for the new center will include sustainable aviation biofuels, advanced air traffic management, advanced metals and bio-materials, and support and services technologies.
"As part of Boeing's strategic, long-term commitment to Brazil, we will establish collaborative R&D projects and perform research at BR&T-Brazil that will benefit Brazil, while supporting Boeing's investment to keep our competitive edge," said Al Bryant, vice president of Boeing Research & Technology-Brazil. "This is a win-win opportunity for Brazil and Boeing."
Boeing Research & Technology-Brazil will be Boeing's sixth advanced research center outside the United States; the others are in Europe, Australia, India, China and Russia.
Boeing's history in the country dates back to 1932, when Boeing delivered 14 F4B-4 fighters to the Brazilian government. Boeing made its first commercial delivery to Brazil in 1960 and continues to deliver cutting-edge, high-technology products to Brazilian airlines TAM and GOL.
In July 2011, Boeing and Brazilian aircraft manufacturer Embraer announced plans to jointly fund an analysis of opportunities to produce sustainable aviation jet biofuel. In October 2011, Boeing, Embraer and FAPESP (Sao Paulo State Research Foundation) signed a letter of intent to expand the analysis and develop a detailed report outlining the unique opportunities and challenges of creating a cost-effective, bio-derived, and sustainable jet-fuel production and distribution industry in Brazil.
Brazil has Latin America's fastest-growing commercial aviation market. Boeing has forecasted that Brazil will need to purchase more than 1,000 airplanes worth more than $100 billion in the next 20 years. GOL Airlines operates one of the largest 737 fleets in the world, and TAM Airlines will become the first Brazilian 777 operator.
Headquartered in Chicago, IL Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing Research & Technology collaborates with customers, suppliers, universities and R&D agencies throughout the world to provide a broad base of innovative and affordable technologies for Boeing's business units.
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