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McDONNELL DOUGLAS PLANS APACHE PRODUCTION SLOWDOWN AS CORPORATE INTEGRATION CONTINUES; HELICOPTER CO. HAS NEW NAME

 MESA, Ariz., Sept. 8 /PRNewswire/ -- Reduced defense spending by the U.S. government and delayed orders from foreign helicopter customers have prompted McDonnell Douglas to plan reductions in the number of Apache helicopters it builds each month.
 McDonnell Douglas plans to slow production of AH-64 Apache helicopters from five to four aircraft a month, beginning later this year. Production will slow to three aircraft a month in 1995.
 Some jobs will be lost as a result of the production slowdown. The number and classification of those jobs still is under study by the company.
 "The difficult decision to reduce the Apache production rate was necessary to keep the assembly line open until Longbow Apache production begins," said Dean Borgman, senior vice president-general manager of the renamed McDonnell Douglas Helicopter Systems. Borgman retains the top position of the new business unit that had been known as McDonnell Douglas Helicopter Co.
 The new unit evolved as part of the continuing effort to integrate operations within McDonnell Douglas Aerospace.
 "It's obvious that by reducing our Apache production rate, we are reacting to the conditions of the market we serve," Borgman said. "The regrettable consequence of that action is a reduction in the number of jobs required to perform the work we have.
 "By taking this action now, we ensure the continuation of the production line and the preservation of an even greater number of jobs."
 Borgman also announced several senior management changes designed to streamline operations, enhance communications within McDonnell Douglas Aerospace and provide renewed emphasis on developing new markets.
 Second-in-command Charles Suyo has been named senior vice president- operations.
 Additionally, the business development and customer support functions, which had been operating as a single organization, will be divided.
 In order to focus increased management attention on critical new business opportunities, Joseph Campbell will assume responsibility for all marketing-related functions as vice president of business development. Responsibility for customer support activities will be split between military and commercial programs.
 The operations division, encompassing production work in both Mesa and Culver City, Calif., has been renamed production operations. Director Donny McGlothlin will lead the division and will join the unit's executive council.
 The former materials management division has been renamed supplier management and quality systems support and will be led by vice president Mark Bingaman. He will retain responsibility for materials management, quality, information technology and facilities activities.
 -0- 9/8/93
 /CONTACT: Ken Jensen, McDonnell Douglas Aerospace, 602-891-2119/


CO: McDonnell Douglas Aerospace; McDonnell Douglas Helicopter Systems ST: Arizona IN: ARO SU:

LM-JB -- LA040 -- 9956 09/08/93 16:01 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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