Boeing, Lockheed rocket toward collaboration
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Manufacturing News, Source : TheManufacturer.com
Published : 03 May 2005 17:07
Aerospace manufacturing giants Boeing and Lockheed Martin have entered into an agreement to create a joint venture to combine production, engineering, test and launch operations for US government launches of Boeing Delta and Lockheed Martin Atlas rockets.
The joint venture, named United Launch Alliance, will reduce costs for the US government. United Launch Alliance will be structured as a 50-50 joint venture between Boeing and Lockheed Martin—combining services currently provided separately by Boeing Integrated Defense Systems’ Expendable Launch Systems division and by Lockheed Martin’s Space Systems Company—for launches of each company’s respective rockets. Based upon initial estimates, annual savings to the government resulting from the combination are expected to be approximately $100 million to $150 million.
“This combination will permit our national customers to achieve their mission objectives while reflecting current budget pressures and providing the government with full cost visibility,” said Lockheed Martin Chairman, President and Chief Executive Officer Robert J. Stevens.
The agreement, which is subject to government and regulatory approval in the US and internationally, also stipulates that the companies will immediately request an order from the US District Court suspending all activity in the pending civil litigation related to a previous competition for launches under the Air Force EELV program. Simultaneous with the closing of the transaction, the parties will dismiss all claims against each other.
“When agreement was reached to form this alliance, both parties agreed that they were ready to move forward with a clean slate and an undistracted focus on mission success,” said Stevens.
United Launch Alliance is expected to have about 3,800 total employees at sites in Colorado, Alabama, Florida, California and Texas. It is anticipated that consolidation of the two organizations eventually will result in the elimination of some undetermined number of positions. Completion of the transaction is expected in late 2005.
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