Leonardo to Keep Grottaglie Plant Open in Deal with Trade Unions

By Cristina Gallardo

Leonardo struck a deal with the trade unions to manage the production slowdown of the Boeing 787 program and relaunch its plant in Grottaglie, southern Italy.

The Italian aerospace and defense group said Wednesday that it has committed to keeping the facility, located in the Puglia region, operational.

As part of the agreement, Leonardo will limit production cuts only to the Boeing 787 program, and maintain other programs at Grottaglie as planned, it said.

The company had previously floated the possibility of temporarily closing the plant, where it produces two sections of the Boeing 787 fuselage, in response to rate cuts on the aircraft due to safety issues and inspections.

Instead, workers at the plant will alternate between a single work shift and partial temporary furlough from July 29, Leonardo said.

Leonardo said the program remains very popular, with orders exceeding 1,900 Boeing 787 aircraft and 1,100 deliveries so far. It added that it expects production rate to tick up as early as the beginning of 2025.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

(END) Dow Jones Newswires

July 24, 2024 10:30 ET (14:30 GMT)

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