Leonardo cuts production of 787 fuselages at Grottaglie

The recent temporary rate cuts on the Boeing 787 due to continuing safety issues and inspections has resulted in repercussions in the supply chain across the ocean.  Leonardo, who build two sections of the 787 fuselage in Italy, has temporarily suspended its operations in its Grottaglie facility, as the companies now have adequate inventory to manage the new 3 aircraft per month rate, cut from the current 5 per month level.  Boeing expects this to be a short-lived situation, and Leonardo’s cuts are scheduled to last four months.

In the US, it is easy to cut staff, but not so in Europe.  As a result, employees could be transitioned within the division to other facilities, and a redundancy fund has been opened for a maximum of 4 months to ensure continued employment.