Triumph is shifting Gulfstream G650 wing box and wing completion work to Gulfstream’s plant in Savannah, Georgia, and working with the manufacturer to realign other work on the G500 and G600 programs to optimize production.
The Berwyn, Pennsylvania-based supplier said it reached the agreement with Gulfstream to move work to where it is “best performed,” adding this would affect components for wings, leading edges, stringers, skins, flaps, and composites.
Gulfstream G650 wing box and wing completion work has been co-produced at Triumph’s Tulsa, Oklahoma and Nashville, Tennessee facilities, as well as Gulfstream’s plant in Savannah. This will be consolidated at Gulfstream’s structures center in Savannah. Triumph will continue to be an integrator on that program. Gulfstream and Triumph further are exploring possibilities for metal and composite structures on the G500 and G600 program. Triumph said such a move could better leverage its capabilities.
“In response to the strong demand for the G650, G500, and G600 platforms, Triumph is working with Gulfstream to complete the assembly of components now jointly produced at both our companies in fewer but more focused locations where investments in automation and the co-location of the assembly line can support higher rates of production with increased quality levels,” said Triumph Group president and CEO Dan Crowley.
Once these actions are completed, Triumph believes that the realignment will benefit its long-term financial performance.
Triumph Group a year ago had considered filing bankruptcy proceedings for its Vought Aircraft work, which had included wings for the Global 7000 and Gulfstream G650 and G280, as well as aerostructures for numerous other Gulfstream, Embraer, Cessna Citation, Bell, Boeing, and Airbus programs.
The company opted against that step after working with lenders and manufacturers, including settling a dispute with Bombardier on the Global 7000 wing, and has been in the midst of a “transformation strategy” to shore up its bottom line.
“We are now implementing our transformation as we take decisive action to improve execution, reduce costs, and operate as an integrated enterprise as part of an overall effort to drive value…We remain confident in our strategic plan and the path we are taking to position Triumph for long-term success,” Crowley has said.
The company posed a net quarterly operating loss of $119.7 million in its most recent reported results (for third quarter Fiscal Year 2018). That loss, however, included a $190.2 million impairment charge for Precision Components, which was merged into its Aerospace Structures unit at the beginning of the year.
“Aerospace Structures and Precision Components have each made significant strides in their operational turnarounds and now have solid foundations for growth,” Crowley said of the decision to combine the entities. “This is the right time to combine their operations so that we can accelerate their turnaround to deliver value for our shareholders and customers.”
The company has seen progress on its transformation strategy with growing net sales in aerospace structures and improved operational performance, he said in releasing the company’s third quarter results in February.