SEATTLE, Jan. 16, 2018 /PRNewswire/ -- Boeing [NYSE: BA]
and Adient [NYSE:ADNT] today announced the formation of Adient
Aerospace, a joint venture that will develop, manufacture and sell
a portfolio of seating products to airlines and aircraft leasing
companies. The seats will be available for installation on new
airplanes and as retrofit configurations for aircraft produced by
Boeing and other commercial airplane manufacturers.
The joint venture between Boeing, the world's largest aerospace
company, and Adient, the global leader in automotive
seating, addresses the aviation industry's needs for more
capacity in the seating category, superior quality and reliable
on-time performance. Adient Aerospace will benefit from the
world-class engineering teams and innovative cultures at both
companies, as well as shared expertise in managing complex, global
supply chains.
"Seats have been a persistent challenge for our customers, the
industry and Boeing, and we are taking action to help address
constraints in the market. Adient Aerospace will
leverage Boeing's industry leadership and deep understanding
of customer needs and technical requirements, to provide a superior
seating product for airlines and passengers around the world," said
Kevin Schemm, senior vice president
of Supply Chain Management, Finance & Business Operations and
chief financial officer for Boeing Commercial Airplanes.
"This joint venture supports Boeing's vertical integration
strategy to develop in-house capabilities and depth in key areas to
offer better products, grow services and generate higher lifecycle
value."
"Adient has a strong set of transferable competencies that will
offer a unique opportunity to create value for our company and for
Boeing, our shareholders and the broader commercial aircraft
market," said Adient chairman and CEO Bruce
McDonald. "To enhance the customer experience for
passengers, airlines and commercial airplane manufacturers, we will
apply our unmatched expertise for comfort and craftsmanship along
with our reputation for operational excellence."
Adient Aerospace's operational headquarters, technology center
and initial production plant will be located in Kaiserslautern,
Germany, near Frankfurt. The joint venture's initial
customer service center will be based in Seattle, Washington. Adient Aerospace
aftermarket spare parts distribution will be performed exclusively
through Aviall, a wholly owned subsidiary of Boeing.
Adient is the majority stakeholder in the new company (50.01
percent share) and expects the joint venture to be included in its
consolidated financial statements. Boeing (as 49.99 percent
partner) will receive a proportionate share of the earnings and
cash flow. Both will have representation on Adient Aerospace's
board of directors.
Industry analysts forecast the commercial aircraft seating
market to grow from approximately $4.5
billion in 2017 to $6 billion
by 2026.
About Boeing:
Boeing is the world's largest aerospace company and leading
manufacturer of commercial airplanes and defense, space and
security systems.
Boeing is also the world leader in combined commercial airlines
and government services with customers in more than 150 countries.
The company's products and tailored services include commercial and
military aircraft, satellites, weapons, electronic and defense
systems, launch systems, advanced information and communication
systems, and performance-based logistics and training. Boeing
employs approximately 140,000 people across the United States and in more than 65
countries. Company revenues for 2016 were $94.6 billion.
About Adient:
Adient is the global leader in automotive seating. With
86,000 employees operating 237 manufacturing/assembly plants in 33
countries worldwide, Adient produces and delivers automotive
seating for all vehicle classes and all major OEMs. From complete
seating systems to individual components, Adient's expertise spans
every step of the automotive seat making process. Adient's
integrated, in-house skills allows the company to take
products from research and design all the way to engineering and
manufacturing – and into more than 25 million vehicles every year.
For more information on Adient, please visit adient.com.
Forward-Looking Information Is Subject to Risk and
Uncertainty
Certain statements in this release may be "forward-looking"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding benefits and synergies of
the joint venture and future business prospects, as well as any
other statement that does not directly relate to any historical or
current fact. Forward-looking statements are based on current
assumptions about future events that may not prove to be accurate.
These statements are not guarantees and are subject to risks,
uncertainties and changes in circumstances that are difficult to
predict. Many factors could cause actual results to differ
materially from these forward-looking statements. As a result,
these statements speak only as of the date they are made and
neither party undertakes an obligation to update or revise any
forward-looking statement, except as required by law. Specific
factors that could cause actual results to differ materially from
these forward-looking statements include the effect of global
economic conditions, the ability of the parties to realize
anticipated synergies, and other important factors disclosed
previously and from time to time in the filings of The Boeing
Company and Adient with the Securities and Exchange Commission.
Contact:
Boeing Communications
+1 312 544-2002
Ulrich Andree
Adient Communications
+49 2174 65-4343
Ulrich.andree@adient.com
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SOURCE Boeing