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Monday, June 23, 2003

Indiana towns make pitches for Boeing plant



By The Associated Press

Several Indiana communities are vying for a Boeing Co. plant that will produce the company's proposed new 7E7 jetliners.

About two dozen states hoping for a big economic boost made pitches to the company by Friday's deadline.

Indiana has not been identified in economic development circles as a plausible contender for the Boeing plant. Some say it really is not a contest, anyway - that Boeing is simply trying to squeeze more concessions from Washington state, where the company assembles most of its planes.

But economic development leaders in Indiana were not giving up hope the state could land the plant, which is to employ about 1,200 production workers.

Among the communities that have expressed interest are Indianapolis, Gary, Evansville, Fort Wayne, South Bend and Terre Haute.

The Indiana Department of Commerce was not revealing much about its submission Friday.

"The names of the proposed locations are confidential and will not be disclosed," said Tim Monger, executive director.

But Gary Mayor Scott King confirmed the city is one of a handful of Indiana cities vying to get the plant. City officials hope being closer to Boeing's Chicago headquarters and to waterway and rail arteries will give Gary a lead on other proposals.

The Indy Partnership, a regional economic development group for central Indiana, also submitted its own proposal with the city of Indianapolis.

"I don't know if there's any chance of getting this, but at the same time, we have to put our best foot forward," said Greg Schenkel, president of the Indy Partnership.

Indianapolis leaders are eager to restore aviation employment decimated by the closing of United Airlines' maintenance base, which idled more than 1,100 people. There also have been hundreds of other layoffs here in recent years in the slumping airline industry.

Indiana has won a number of coveted economic development projects in the past, including Toyota's truck factory in Princeton, the Subaru-Isuzu auto plant in Lafayette and United Airline's aircraft repair base at Indianapolis International Airport.

But the closure of the United repair base, for which the city and state provided more than $300 million in incentives to attract, raises questions whether officials have the will to engage in another, risky bidding war.

Some insiders say state leaders are making at least a lukewarm attempt for the lucrative, high-profile project.

Ultimately, though, the contest comes down to one thing for Boeing.

"They're being driven by what will give them the lowest overall costs to produce and develop the aircraft. It's that simple," said Boeing analyst Paul H. Nisbet of JSA Research in Newport, R.I.

He said the state of Washington has put together an enticing package to keep the company there: $3.2 billion in tax breaks over 20 years.

The proposed 7E7 will have a long range of 8,000 miles, which could fly from Australia to Germany. It also will be 20 percent more fuel-efficient than current airliners by using a sleek aerodynamic shape and lightweight composite materials.




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