By Paul Page 

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Boeing Co. thinks it can speed up production of satellites by using fewer workers. The aerospace giant is proposing to overhaul the manufacturing process by relying more on 3-D printing and going to simpler assembly patterns that would streamline supply chains, the WSJ's Andy Pasztor reports. That would mark a big change in a satellite business that traditionally has relied on highly customized, manual assembly procedures that keep production slow and costs high. But new methods and new technology are aimed at bringing together standardized, pretested components and sidestepping most of the painstaking testing and integration currently that's now carried out on the factory floor. That will mean lower supplier and labor costs in the near term, but Boeing also expects to become more nimble in its manufacturing by being able to upgrade technology even while production is underway. Those processes could filter into Boeing's aircraft and, if it flies, become a model for other manufacturers.

Tesla Inc. may be starting to get a grip on the automotive supply chain , but it still has a long way to go. The company, which dropped the word "motors" from its name, delivered 22,200 sedans and SUVs in the fourth quarter, the WSJ's Tim Higgins reports. The quarter was Tesla's second-best ever for deliveries in a business that has struggled with supplier problems and production delays. But the 27% year-over-year growth in the last quarter left the company about 4,000 vehicles short of the 50,000 deliveries that Tesla Chief Executive Elon Musk had targeted for the second half of 2016. The targets are significant for a business that is trying to redraw motor vehicle supply chains as it changes consumer buying behavior. The company will have to ramp up the pace: it plans to start sales of its Model 3 later this year, a sedan that is supposed to expand annual production to 500,000 cars next year -- nearly six times the current rate.

One of China's biggest car makers is looking to redesign Asia's automotive supply chains. Zhejiang Geely Holding Group Co., the Chinese auto maker that owns Volvo Cars, is readying a bid for a majority stake in Malaysian car makerProton Holdings Bhd., the WSJ's Yantoultra Ngui, Trefor Moss and Kane Wu report. The effort comes as Proton's parent is looking for a foreign strategic partner, and France's PSA Group, which makes Peugeot and Citroën cars, also has submitted a bid. But Geely's offer could have the biggest impact. The company is looking to get a piece of the big auto market outside China, and could scale up quickly with the Malaysian manufacturer: Cars built in any of the 10 members of the Association of Southeast Asian Nations can be sold throughout the bloc tariff-free. That would boost Geely in the consumer market and on the production end helping the auto maker build bigger scale with its parts suppliers.

SUPPLY CHAIN STRATEGIES

One of the biggest meat companies in the U.S. could overhaul the country's poultry supply chains with a decision to eliminate antibiotics in its products. Tyson Foods Inc. expects the move will vault the company to the top of the rapidly expanding "no antibiotics ever" market, the WSJ's Jacob Bunge reports, a market where products can command premium prices but also cost more to produce. It's part of Tyson's broader push to shift from its roots as a bulk commodity supplier into a branded, higher-grade distributor in its own right. The impact of the no-antibiotics decision will ripple across farms and supply chains since Tyson processes more than one-fifth of all poultry sold in the U.S. It's a big win for groups fighting the use of antibiotics in food supply chains since Tyson's big scale will make it more economical for more farms to operate without the drugs.

QUOTABLE

IN OTHER NEWS

U.S. home sales rose in January to the highest level since February 2007. (WSJ)

Mexico's economic growth slowed moderately in the fourth quarter as a sluggish industrial sector offset robust gains in domestic consumption. (WSJ)

China sharply expanded its North Korean coal imports in the weeks before Beijing suspended the coal trade. (WSJ)

Workers at Japan's Yamato Transport want the company to curb the number of packages it delivers amid surging demand and a shortage of manpower. (Nikkei Asian Review)

Up to 20,000 metric tons of cocoa is rotting at Ivory Coast ports and might not be sold following a wave of defaults by exporters. (Reuters)

Rail equipment maker Wabtec Corp.'s profit plummeted 63% in the fourth quarter as railroads restrained spending in a tight freight market. (Pittsburgh Post-Gazette)

Texas-based less-than-truckload carrier Central Freight Lines Inc. agreed to buy assets of Wilson Trucking Corp., based in Fisherville, Va. (Staunton News Leader)

The union representing Spain's port workers set a series of strikes starting next month to protest a port liberalization plan. (Lloyd's List)

U.S. domestic container line Matson Inc.'s fourth-quarter net profit fell 27% to $19.4 million as rising fuel costs offset a 5% gain in revenue. (American Shipper)

The new Seoul-based SM Shipping container line will launch service April 21 with a single string of ships sailing between Asia and the U.S. West Coast. (Korea Pulse)

Container ship owner Danaos Corp. slumped to a $446.6 million loss in the fourth quarter as it took a $205 million charge related to bankrupt Hanjin Shipping. (Seatrade Maritime)

APM Terminals will nearly triple its investment plans at Port Elizabeth, N.J., to $200 million to prepare for larger container ships. (Port Technology)

Libyan militia forces allied with a powerful warlord seized a commercial car carrier traveling through the Mediterranean. (Maritime-Executive)

Discount retailer Dollar General Inc. will build a $91 million distribution center in central New York state, its 16th in the U.S. (Business Journals)

New Zealand is projecting strong exports of apples and pears after record crops this year. (FruitNet)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ Logistics Report on Twitter at @WSJLogistics.

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Write to Paul Page at paul.page@wsj.com

 

(END) Dow Jones Newswires

February 23, 2017 06:53 ET (11:53 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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