Spirit AeroSystems [NYSE: SPR] has announced it has signed a Memorandum of Agreement (MOA) with The Boeing Company that establishes a long-term partnership between the two groups, the company said.
The agreement includes:
-Pricing terms for certain programs including the Boeing Next Generation 737, Boeing 737 MAX, 767, 777 freighters and 777-9, the Boeing 787 Dreamliner well into the next decade;
-Boeing 737 pricing based on production rates above and below current production levels;
Investments for tooling and capital for certain Boeing 737 rate increases;
-Joint cost reduction programs for the Boeing 777X and 787 Dreamliner;
-Boeing´s agreement to provide consent to the Company´s acquisition of S.R.I.F. N.V., the parent company of Asco Industries, N.V.; and
-The release of liability and claims asserted by both companies related to Boeing 737 disruption activity and other matters.
Prior agreements between Boeing and Spirit have memorialized a cost reduction program with respect to the Boeing 737 and pricing for the Boeing 747 and 777 models.
The company said this agreement further strengthens the long-standing partnership between Boeing and Spirit as it removes uncertainty well into the next decade. The agreement establishes pricing and capital investment for a range of potential production rate increases on the 737 program.
Spirit AeroSystems Inc. designs and builds aerostructures for both commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in the US, UK, France and Malaysia. The company´s core products include fuselages, pylons, nacelles and wing components for the world´s premier aircraft.