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Boeing (BA. N) will suspend production of 737 aircraft in January, which is the first time for the company in more than 20 years. Because of the no fly order of Boeing's best-selling Max aircraft after two fatal air crashes, it is expected that it will continue until 2020.
Boeing said it would not lay off any employees during the temporary shutdown, but the action could have an impact on Boeing's global supply chain and the U.S. economy. Boeing makes 737 aircraft in the south of Seattle.
Boeing's board of directors made the decision two days after meeting in Chicago. The Federal Aviation Administration last week said it would not agree to go around until 2020.
737 Max has been banned since March this year after a five-month air crash in Indonesia and Ethiopia (Ethiopia) killed 346 people, costing Boeing more than $9 billion.
Up to now, Boeing has been producing 737 Max models at the rate of 42 aircraft per month, and purchasing spare parts from suppliers at a rate of up to 52 groups per month, although Boeing aircraft delivery has been frozen before regulators approved that 737 Max could be used for commercial flights again.
The suspension of production will ease the cash crunch caused by some 375 undelivered aircraft, but industry sources say there is a risk of industry problems only if Boeing tries to return to normal. At present, the supply chain has been in a state of tension due to record demand, and sudden changes in the production speed of the factory may cause obstacles.
In 1997, Boeing announced $2.6 billion in investment, including hundreds of millions of dollars to deal with inefficient factories. Boeing had been forced to suspend production on its 737 and 747 lines because of supply chain problems.


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