On Tuesday, aircraft manufacturing giant Boeing and automotive seating company Adient formed Adient Aerospace, a joint venture that will focus on designing, manufacturing and selling seating products to airlines and aircraft leasing companies.
“Seats have been a persistent challenge for our customers, the industry, and Boeing, and we are taking action to help address constraints in the market. Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world,” said Kevin Schemm, Boeing’s Senior Vice President of Supply Chain Management, Finance and Business Operations and Chief Financial Officer for Boeing Commercial Airplanes.
“This joint venture supports Boeing’s vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value,” Schemm added.
According to Boeing, Adient Aerospace’s headquarters and initial production plant will be located near Frankfurt, Germany, and the customer service center will be located in Seattle, WA.
”Adient has a strong set of transferable competencies that will offer a unique opportunity to create value for our company and for Boeing, our shareholders and the broader commercial aircraft market,” said Bruce McDonald, CEO and Chairman, Adient. “To enhance the customer experience for passengers, airlines and commercial airplane manufacturers, we will apply our unmatched expertise for comfort and craftsmanship along with our reputation for operational excellence.”
Adient is the majority stakeholder in the venture with a 50.01 percent share, with Boeing holding the remaining 49.99 percent. The two companies will receive proportionate shares of earnings and cash flow, and will both have representation on the board of directors.