Kawasaki may build new plant for Boeing 787 parts

Tokyo, June 18: Japanese heavy machinery maker Kawasaki Heavy Industries Ltd said on Monday it is looking at building a second plant to construct parts for Boeing Co's 787 Dreamliner in response to strong demand for the plane.

Kawasaki Heavy's shares rose 2.9 per cent to 504 yen in morning trade.

Boeing's first all-new plane in more than a decade has racked up more than billion worth of orders in just under three years and the U.S. plane maker is pushing hard to keep its most successful plane launch on schedule.

''We are looking at building the plant and are making preparations but it depends on how things go with Boeing,'' said Kawasaki Heavy spokesman Yusuke Kamada.

The Nikkei business daily reported that the second plant would cost 20 billion yen (2 million), and double its monthly output for parts for 14 aircraft bodies.

If the company, which makes forward fuselages for the aircraft, were to go ahead with the new plant, it would be built next to its existing plant in Aichi prefecture, Kamada said.

The company had not decided on how much it would invest but it spent 17 billion yen on the first factory, he added.

Reuters>