Boeing to stay in Heath
HEATH – Boeing, which has repaired and maintained inertial guidance systems in Heath since 1996 for the U.S. Air Force, will continue the work here at least 18 more years, the company announced Monday.
The $1.6 billion sole-source contract extension through 2039 allows the company to remain at the Central Ohio Aerospace and Technology Center doing its job of maintaining the readiness and accuracy of the Minuteman III intercontinental ballistic missile.
The Heath-newark-licking County Port Authority, which owns and manages COATC, announced in May an agreement to extend Boeing’s lease with the Port Authority for clean room and advanced manufacturing space through 2028, a $25 million investment, with options through 2043, an investment of more than $100 million.
Retaining Boeing, the largest tenant of the aerospace center campus, has always been viewed as crucial for the stability of COATC. Boeing’s lease has always been extended in advance of the contract extension.
“This really is a big deal,” Port Authority Executive Director Rick Platt said. “The contract extension is fantastic news. From the Port Authority standpoint, it kind of validates why we’ve spent so much time on manufacturing and STEM skills in the workforce.”
The Boeing-built ICBM weapon system has served as the enduring ground-based leg of the U.S. nuclear triad since the inception of strategic deterrence. Boeing is the only company that has continuously supported every ICBM subsystem – ground, guidance, propulsion and re-entry – over the lifetime of the weapon system, according to the company.
“As the original equipment manufacturer of the ICBM guidance system, this contract ensures the continued reliability, safety and accuracy of our nation’s land-based strategic deterrent,” said Mike Murasky, site leader for the Boeing Guidance Repair Center. “We appreciate the confidence the Air
“As the original equipment manufacturer of the ICBM guidance system, this contract ensures the continued reliability, safety and accuracy of our nation’s land-based strategic deterrent. We appreciate the confidence the Air Force has demonstrated in our capability to continue providing them with the highest quality support.”
Mike Murasky Site leader for the Boeing Guidance Repair Center
Force has demonstrated in our capability to continue providing them with the highest quality support.”
The stability of the Heath site has been a big reason the Air Force has continued to renew the contract with Boeing at the former Newark Air Force Base facility.
“The BGRC is ideal for the precision operations of navigation and guidance systems because of Its location in Heath, which is the most geologically stable point in the United States other than Cheyenne Mountain in central Colorado,” said Megan Gessner, a Boeing Defense, Space and Security spokeswoman.
Stability, Platt said, is the key for all parties involved in the agreement.
“Stability is the reason they came in 1996, and it’s economic stability and workforce stability this contract signals, and also stability for the Department of Defense,” Platt said.
Oct. 1 marks 25 years since privatization of the workload of the former Newark Air Force Base.
Since the Air Force Base closed, the privatized aerospace center campus has grown to include more than 20 companies and 1,650 employees. And, although the base closed, an Air Force presence remains on the campus. The employers have a combined payroll of
$127 million, for a $77,000 annual average.
The diversification of the manufacturing campus has helped the Port Authority retain Boeing, Platt said. The Port Authority is the largest self-sustaining port authority in Ohio.
“If Boeing was the only tenant, we’d be passing more costs on,” Platt said. “The lease costs are actually below 1996 when Boeing first signed on and that has a lot to do with the diversification.
“With the manufacturing and STEM skills workforce, we need to have a diversity of companies demanding those skills. Boeing benefits when we have a breadth of people seeking STEM skills.”
Boeing employs more than 600 people in Ohio, its largest supplier state. It reported $12.1 billion in business in Ohio in 2020. kmallett@newarkadvocate.com 740-973-4539
Twitter: @kmallett1958