Boeing wins $38 billion in orders, commitments from China

Wed Sep 23, 2015 5:08pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Alwyn Scott and Eric M. Johnson

SEATTLE (Reuters) - Boeing Co (BA.N: Quote) said on Wednesday it had won orders and commitments from China for 250 narrowbody 737 aircraft and 50 widebody aircraft, valued at about $38 billion at list prices.

The order, announced as Chinese President Xi Jinping toured Boeing's Everett, Washington, factory, includes some planes that were previously ordered but for which the buyers had not been identified. Boeing declined to say how many planes had been previously ordered, leaving uncertainty about the total value.

Boeing's shares were down 1.5 percent at $131.95 in afternoon trading in New York.

After walking through a parked 787 Dreamliner, Xi told hundreds of Boeing employees in the factory that he sees bright prospects for future collaboration between China and Boeing.

Boeing Chief Executive Dennis Muilenburg thanked Xi for the orders and called his visit a "testament" to the relationship between the U.S., Boeing and China.

Earlier on Wednesday, China's ICBC Financial Leasing Co, a unit of the Industrial and Commercial Bank of China 601398.SS, separately confirmed it will buy 30 of Boeing's 737-800 jets, worth $2.88 billion at list prices.

Boeing also was due to announce an agreement to build a 737 completion center in China that would finish, paint and deliver 737s built at Boeing's factory in Renton, Washington.

Machinist union members say they stand to lose work to China and some planned to protest on Wednesday. Boeing said on Tuesday it doesn't expect to lay off or reduce staff related to the 737 because of the new factory in China.   Continued...

Chinese President Xi Jinping (L) shakes hands with Dennis Muilenburg, president and CEO of the Boeing Company, after Xi's tour of the Boeing factory in Everett, Washington September 23, 2015. REUTERS/Mark Ralston/Pool