Spirit AeroSystems reaches agreement with Boeing for 737 MAX production

Kansas-based Spirit AeroSystems [NYSE: SPR] has announced that it reached an agreement with Boeing relating to the production rate of the 737 MAX, the company said.

Under the agreement, Spirit will restart production slowly, ramping up deliveries throughout the year to reach a total of 216 MAX shipsets delivered to Boeing in 2020. Spirit does not expect to achieve a production rate of 52 shipsets per month until late 2022. The parties are continuing to negotiate other terms.

The rate agreement is based on several assumptions including Boeing´s expected production rate and the successful return of the 737 MAX to service. As previously disclosed, the 737 MAX contractual agreement is a requirement contract between Boeing and Spirit and the rate may change at any time.

Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers.