Textron cancels Cessna Columbus program - The Business Review (Albany):

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In April, the company announced it would suspenfdthe program, leading Cessna leaders to say it would only be a matte of time until the project came But in Thursday’s filingg with the SEC, Textron (NYSE:TXT) said “Upon additionaol analysis of the business-jet market related to this productt offering, we decided to formally cancel furtherr development of the Citation Columbus.” Textron says it alreadg had incurred about $50 million in capitalizer tooling and facility costs relatedf to the project. It says it will recor a non-cash pre-tax charge of abouyt $43 million for the first two quarters of 2009 to reflectf the impairment of the facility andtoolinvg assets.
Wichita Mayor Carl Brewer, who was in Denvert Friday at a conference, had not heard the Columbus projectr was being canceled until askefd about it by the WichitaBusiness Journal. “I’j disappointed,” Brewer says. “... We believe this is part of the futurse for the cityof Wichita. We’re just really disappointed that it At thesame time, he he understands the economic climate has forcedc businesses to make tough decisions. The project was to have built 600,000-square-foot final assembly building at Cessna wher the majority ofthe $27 million business jet woul be built. There was also to have been a 45,000-square-foo t physical plant to serve themain building.
Constructiob costs were expected tobe $200 millio and bids were put out in • • • • • Columbus, Kan.-basesd Inc. Apart from the loss in constructiojn jobs, the Wichita area now appears to have lost out for good onthe 1,000o direct jobs and the 3,000 spin-ofv jobs the program was estimateds to create. It also appears likely that Cessns will have to pay backthe $10 milliob it received in city and countyt incentives and the $33 milliohn it received from the state for the Like Brewer, Sedgwick County Commissioner Tim Nortojn says he is disappointed to hear the news of the “I think most Wichitans and the business communitgy looked at that as a big announcement,” he “It takes a littls bit of the wind out of the sails for Cessnz and general aviation.
It could have been a huge boos t to Wichita over the next couple years and I thinmk everybodysaw that.” Norton says he hopex the project will be able to return somewhere down the The business plan that was put in place, he still could be a good fit.