July 6, 2016 / 3:58 PM / a year ago

Leonardo Finmeccanica to overhaul Boeing 787 supply chain

MILAN (Reuters) - Italian defense group Leonardo Finmeccanica LDOF.MI said on Wednesday it intended to press ahead with overhauling the supply chain that produces parts for the Boeing 787 program.

The new Finmeccanica's logo, Leonardo, is seen on a screen during a meeting of shareholders in Rome, Italy, April 24, 2016. REUTERS/Alessandro Bianchi

The state-controlled group supplies major segments of the 787 fuselage for Boeing BA.N.

Italian newspaper Il Sole 24 Ore said on Wednesday Boeing had written a letter to Leonardo Finmeccanica complaining of the quality of its production and delays in delivery.

A spokesman for the Italian company confirmed receipt of the letter.

In a note emailed to Reuters, Leonardo Finmeccanica acknowledged there had been problems in the past.

“A complete review of the supply chain has been carried out, including the insourcing of the most valuable parts of the production process,” it said.

Boeing’s high-tech 787 Dreamliner is facing slowing sales and needs to sell dozens of planes to help recover investments.

Reporting by Stephen Jewkes; editing by Francesca Landini

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