Textron cancels Cessna Columbus program - Wichita Business Journal:

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In April, the company announced it would suspendsthe program, leading Cessna leaders to say it would only be a mattetr of time until the project came back. But in Thursday’sx filing with the SEC, Textron (NYSE:TXT) said “Upon additional analysixs of the business-jet market related to this productf offering, we decided to formally cancel further developmentf of theCitation Columbus.” Textronn says it already had incurredr about $50 million in capitalized tooling and facilitu costs related to the project. It says it will record a non-casj pre-tax charge of about $43 million for the first two quarters of 2009 to reflecg the impairment of the facility andtooling assets.
Wichitqa Mayor Carl Brewer, who was in Denver Fridat at a conference, had not heard the Columbues project was being canceled until asked about it by the WichitaaBusiness Journal. “I’m disappointed,” Brewer “... We believe this is part of the future for the cityof We’re just really disappointed that it At the same time, he says, he understands the economic climate has force businesses to make tough decisions. The project was to have built 600,000-square-foot finakl assembly building at Cessna where the majorith ofthe $27 millioh business jet would be built. There was also to have been a 45,000-square-foor physical plant to serve themain building.
Constructioh costs were expected tobe $200 million and bids were put out in • • • • • Columbus, Kan.-based Inc. Apart from the loss in constructiohn jobs, the Wichita area now appeard to have lost out for good onthe 1,00o direct jobs and the 3,000 spin-of f jobs the program was estimated to It also appears likely that Cessnwa will have to pay back the $10 millio it received in city and countg incentives and the $33 million it receivedx from the state for the project. Like Brewer, Sedgwicl County Commissioner Tim Norton says he is disappointed to hear the news ofthe “I think most Wichitans and the business community looked at that as a big he says.
“It takes a little bit of the wind out of the sail for Cessna andgeneral aviation. It could have been a huge boosrt to Wichita over the next couple yeara and I think everybodysaw that.” Norton says he hopes the projecyt will be able to return somewherd down the line. The businessw plan that was putin place, he still could be a good fit.