Boeing Wants To Build New Aerospace Programs in St. Louis County, Add 500 Jobs

Jul. 22—BERKELEY — The Boeing Co. is planning a nearly $2 billion construction project at its north St. Louis County complex, aimed to support "new aerospace programs" that will bring an estimated 500 jobs to the region, according to records released on Friday.

The plan, if approved and built, would be one of the biggest defense projects in the region's history.

The news follows Boeing's announcement in May that it was expanding its secretive research and prototype unit, "Phantom Works," and as the aerospace industry ramps up for a national competition to build the next generation of U.S. fighter jets.

Kurt LaBelle with Boeing communications said on Friday that the project is about "looking ahead to the future and making advanced manufacturing production facilities." In a statement, Boeing said the project would expand manufacturing potential for "future franchise programs."

LaBelle declined to comment further on the project's purpose.

Boeing's new pitch includes the construction of multiple buildings and leased space totaling a million square feet at two sites adjacent to St. Louis Lambert International Airport, according to the records, released as part of a tax incentive request to the St. Louis County Council before its meeting next week.

The project is expected to cost at least $1.8 billion — more than the $1.7 billion National Geospatial-Intelligence Agency's new headquarters in north St. Louis.

Boeing expects the plan would also support the roughly 16,000 current Boeing employees in the St. Louis region, according to a letter from St. Louis County Executive Sam Page dated Friday and sent to County Council members.

"This project will reinforce our dominance as a region that builds the future of aviation, creates pathways to exciting careers and showcases the pride and talent of St. Louis County," Page said in a prepared statement Friday.

Greater St. Louis CEO Jason Hall said his regional business group has been involved with the project for more than a year. The expansion demonstrates Boeing's "continued commitment to St. Louis and to the future of advanced manufacturing in our metro," Hall said in a statement.

The deal, if approved by the council, would give Boeing half off on the project's real and personal property taxes over 10 years in exchange for the new jobs and investment.

Boeing's St. Louis-area operations are largely in defense products. It's the company's second-largest workforce after Washington state, where it employs 60,200. The company makes the F-15, F/A-18 fighter jets, the T-7A trainer and the MQ-25 refueling drone at sites in St. Louis County, St. Charles and Mascoutah.

The company makes two fighter jets at assembly lines near its local offices in Berkeley: The F-15 and the F/A-18 Super Hornet.

But the Pentagon has been working to phase out purchases of Boeing's legacy fighters from its defense budgets in order to focus on next-generation fighters. In February, Boeing announced, as anticipated, the timeline for winding down the F/A-18 program. The company set the end date for new-build production in 2025, with the possibility of extending into 2027, should it receive more orders from the Indian Navy.

The closure would leave Boeing with only one fighter jet in production. The loss of a fighter jet line would potentially mean cuts to local manufacturing jobs, and less work for the hundreds of local aerospace businesses that supply Boeing — unless the company wins the government contract to build a new generation of fighter jet.

With the F/A-18 line on a trajectory to wind down, the company has been working to ramp up production of the T-7 trainer plane and the MQ-25 refueling drone. Those programs have been key for the company's defense business over the past few years, said Jeff Windau, industrials analyst with Edward Jones. "If you're not in front of your customers, not showing your capabilities, that puts you at a disadvantage," Windau said.

But surely Boeing is also looking to the next, big programs it could win, he said.

"They're looking ahead at the future here," Windau said. "Obviously these programs are unknowns, but you have to make these investments to have the potential to win. No matter what the program is, you have to spend the time up front."

The company said in May that it was building a new, 47,500-square-foot facility to focus on next-generation military aircraft. It will be part of "Phantom Works," a secretive unit in Boeing's defense business that carries out research, development and prototype work, most of it classified.

And Boeing added 900 jobs in the region last year. Executives noted earlier this year that many of those positions were engineers, a signal that the company is looking toward future products.

The documents made public on Friday don't specify the "new aerospace program" Boeing is targeting with this project, instead largely focusing on tax breaks requested and Boeing's impact on the region.

The documents say no existing taxes would be affected by the deal; Boeing would only receive tax breaks on new real estate investment, equipment and construction materials for the buildings.

If approved, St. Louis County would have the authority to issue up to $1.8 billion in bonds to help finance a portion of the proposed development.

It is unclear whether the project will receive state tax incentives. A spokesperson for Missouri Gov. Mike Parson's office deferred questions to the state Department of Economic Development. A department spokesperson said he couldn't comment Friday on whether state tax incentives are in consideration, because it is an ongoing project.

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