The Army and Boeing have signed a $4 billion multi-year contract for 177 Chinook helicopters, with the Army holding options that could increase its total buy to 215 aircraft. Officials said the deal would save taxpayers $800 million.
The Chinook is assembled at the Boeing plant in Ridley Park, Pa. The plant, off Interstate 95, employs a number of Delaware residents in its 6,000 person workforce.
Published reports also indicated that a $4.5 billion order for the Osprey tilt-rotar aircraft was awarded. Components of the aircraft are made at Ridley Park. The Osprey is built by a joint venture of Boeing and Bell Helicopter.
Deliveries under the agreement begin in 2015.
“This multi-year contract provides unprecedented savings for the U.S. Army and American taxpayers,” said Col. Robert Barrie, U.S. Army project manager for Cargo Helicopters. “But the most important benefit is the continued support these aircraft will provide to soldiers in the field and civilians in distress.”
The Army’s current inventory stands at 241 F-model Chinook helicopters.
Fifteen Army active duty and National Guard units operating the CH-47F, and a 16th is currently being equipped.
“The Army is benefiting not only from the efficiencies of a multi-year contract but also from the production efficiency gains Boeing and our suppliers have made,” said Chuck Dabundo, vice president, Boeing Cargo Helicopter Programs. “That includes the $130 million investment we made to modernize the Chinook factory. This contract will enable Boeing and our partners and suppliers in 45 states to bring stability to the workforce and to invest in production tooling, processes and other capital improvements.”
The work is good news for the plant, which is planning to cut 40 jobs, according to the Delaware Daily Times.
