Boeing Co. (BA) announced on Tuesday that it will create 2,500 jobs in Texas if its NewGen Tanker is selected as the U.S. Air Force’s next aerial refueling aircraft. The company will also be able to generate an estimated economic impact of $125 million annually to Texas.

Separately, Michigan will have 450 new jobs if Boeing wins the Pentagon’s contract to build a new fleet of aerial refueling jets. This will also create an estimated $25 million in annual economic impact to Michigan.

Nationwide, the NewGen Tanker program will generate more than 50,000 jobs, in addition to 800 suppliers spread across 40 states.

Manufacturing facilities in Michigan — through Eaton Aerospace (ETN), General Electric (GE) and Honeywell International (HON) — and in Texas — through Parker Aerospace and Vought Aircraft Industries — will produce critical components of the tanker.

Texas presently has 5,000 employees and 300 suppliers/vendors, while Michigan has 280 suppliers/vendors supporting Boeing’s wide variety of programs and works. Currently, Boeing creates an annual economic impact of an estimated $1.9 billion to Texas and an estimated $551 million to Michigan.

Boeing is contending with its competitors Airbus parent European Aeronautic Defence and Space Co. (EADS) for the Air Force contract to build 179 NewGen Tanker that will replace the military’s aging KC-135 refueling jets. Boeing’s NewGen Tanker, based on a military variant of the 767 passenger jet, will be more commercially and operationally viable than a larger, heavier tanker.

Boeing believes its NewGen Tanker will consume less than 24% fuel than the competitor’s airplane, saving more than $10 billion in fuel costs over its 40-year service life.

Boeing Company is among the best-positioned companies in its sector due to its balanced exposure to commercial aircraft and defense equipment. The U.S. defense budget is skewed toward a number of prominent Boeing programs. Overall, a $314.2 billion order backlog, strong order booking and a globally diversified customer base will help maintain the growth momentum.

Headquartered in Chicago, Boeing Company designs and produces commercial airplanes (787, 737, 747, 767, 777), defense systems and civil and defense space systems. It is also the largest contractor for NASA (National Aeronautics and Space Administration).
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