Terming the plant as “not profitable” , GKN aerospace - the leading aerospace supplier stunned it's workers , when it announced that the plant would close by 2023. And the result ? Near about 1,000 workers at the GKN plant in the St. Louis County seeing an uncertain Future.
With 39 manufacturing locations in 12 countries and 15,000 employees , GKN aerospace claims to serve over 90% of the world’s aircraft and engine manufacturers, both in the Civil and military domain.
GKN aerospace - St Louis Facility
St Louis specialises in advanced metallics technology for the world’s leading civil and military aircraft. GKN Aerospace acquired the site from Boeing almost 20 years ago and today it is one of GKN Aerospace’s largest in North American, with close to 1000 employees. Major customers include Boeing, Sikorsky, Bell Helicopters and Lockheed Martin.
In total, they have 16 manufacturing sites across the United States and Mexico. These sites produce aerostructures, engine systems and special technologies for some of the world’s most advanced civil and military aircraft platforms . GKN Aerospace also has an additive manufacturing centre of excellence at Oak Ridge National Laboratories in Tennessee and a US headquarters in Dallas, Texas.
A GKN spokesperson said the company made the decision because the plant is “not profitable.”
GKN Aerospace has made the difficult decision to announce the closure of its St. Louis site. The business has invested significantly in the site over the past decade and, despite the best efforts of everyone involved, the facility has consistently struggled for profitability in recent years.
Having now carried out a thorough assessment of the site – including declining orders, capabilities, and cost base – we have regrettably concluded that it does not have a long-term, sustainable future within the business.
By making this difficult decision now, we will be able to conclude work packages and carry out a gradual site wind-down process. This will be done in consultation with our customers, aiming for the end of 2023.
WESLEY BATES, GKN AEROSPACE MEDIA & COMMUNICATIONS MANAGER
The Missouri Department of Economic Development responded to Thursday’s announcement, stating:
“Throughout the day, we have been in touch with the company. Our thoughts are with the employees and their families who received this news today. Missouri’s aerospace industry and our state‘s economy remain strong, and we stand ready to work alongside our fellow state departments to provide assistance to all those impacted over the course of this transition.”
According to the St. Louis Business Journal, the company is the third-largest employer for the area. The company builds parts for Boeing, Lockheed Martin, and other aerospace manufacturers. The plant has a value of $6.5 million, according to the St. Louis Business Journal.
