Leonardo’s Southern Italy Plant to Temporarily Close Due to Boeing Production Issues

Leonardo, the Italian defense and aerospace group, announced a four-month closure of its plant in Grottaglie, Puglia, due to the ongoing crisis at Boeing affecting global supply chains. The plant, initially established for the Boeing 787 Dreamliner program, faces a temporary shutdown as Boeing contends with reduced production rates and delivery challenges.

Despite the setback, there’s a silver lining for the Grottaglie facility, as Leonardo has chosen this location for the final assembly of the AW609 tilt-rotor aircraft, marking a significant development for the site. This new project aims to boost the plant’s role within Leonardo’s broader operational framework.

The decision to pause operations at the plant was made to align with the diminished production demands for the Boeing 787, reflecting a broader slowdown in growth within the sector. Leonardo estimates that Boeing’s production issues could lead to a financial impact of approximately 50 million euros ($54 million) in 2024.

While the specific dates for the shutdown have not been disclosed, the closure highlights the interconnected nature of global aerospace manufacturing and the ripple effects that issues within one company can have on its partners. Leonardo’s announcement followed detailed discussions with trade unions in Rome, underlining the company’s efforts to manage the implications of the shutdown responsibly.