Boeing, Mitsubishi Reach Cost-cutting Pact for 787 Wings
Contract also calls for joint studies on new commercial aircraft technologies
Mitsubishi Heavy Industries supplies the composite wings for the Boeing 787. A new supply contract between the two companies calls for cost concessions and a joint technology development plan for future programs. (Photo: Boeing)

Boeing and Mitsubishi Heavy Industries (MHI) have signed a new agreement aimed at cutting costs associated with MHI’s production of the wings for the 787 Dreamliner, the companies announced Monday. The contract also calls for joint studies of new aerostructures technologies for future-generation commercial aircraft.


MHI manufactures 787 composite wings at its factory in Nagoya. The agreement defines methods for increasing efficiency in MHI’s production system and supply chain through lean production methods, automation and other activities.


“This agreement advances the strong relationship between Boeing and MHI through joint efforts to reduce cost and improve efficiency, with a focus on MHI's production for the 787 Dreamliner,” said Boeing Commercial Airplanes president and CEO Kevin McAllister. “Collaboration with suppliers is at the heart of our 'Partnering for Success' efforts, positioning our companies to win in today's competitive marketplace and look ahead to future opportunities.”


Boeing’s Partnering for Success program aims to lower costs in the supply chain through improved productivity and more favorable contracts with its suppliers.


The Dreamliner program suffered several delays attributed to difficulties associated with quality control and delivery schedules at Tier 1 suppliers, prompting Boeing to return much of the work outsourced to contractors to its own facilities in Everett, Washington, for the 777X. Boeing will make the 777X’s composite wings, for example, in Everett, leaving MHI primarily with fuselage sections.