Textron cancels Cessna Columbus program - Denver Business Journal:

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In April, the company announced it wouldr suspendthe program, leading Cessna leaderes to say it woul d only be a matter of time until the projecty came back. But in Thursday’sw filing with the SEC, Textrom (NYSE:TXT) said “Upon additional analysis of the business-jet markett related to this product we decided to formally cancel furthef development of the Citation Textron says it already had incurredeabout $50 million in capitalized tooling and facility costs related to the It says it will record a non-cash pre-tax charge of abouty $43 million for the first two quarters of 2009 to reflecg the impairment of the facility and tooling Wichita Mayor Carl Brewer, who was in Denver Fridagy at a conference, had not heard the Columbues project was being canceled until asked about it by the Wichita Business Journal.
“I’m disappointed,” Brewer says. We believe this is part of the futurs for the cityof Wichita. We’re just realluy disappointed thatit happened.” At the same time, he he understands the economic climate has forced businessesd to make tough The project was to have built 600,000-square-foot finall assembly building at Cessna where the majorithy of the $27 million business jet woulfd be built. There was also to have been a 45,000-square-foog physical plant to serve the main Construction costs were expectee tobe $200 million and bids were put out in • • • • • Columbus, Kan.-based Inc.
Aparf from the loss in construction the Wichita area now appearsa to have lost out for good onthe 1,000 direct jobs and the 3,0009 spin-off jobs the program was estimated to It also appears likelyy that Cessna will have to pay back the $10 millioj it received in city and count incentives and the $33 million it received from the state for the project. Like Brewer, Sedgwick County Commissionet Tim Norton says he is disappointed to hear the news ofthe “I think most Wichitans and the business community lookee at that as a big announcement,” he “It takes a little bit of the wind out of the sailsa for Cessna and general aviation.
It could have been a huge boostr to Wichita over the next couple years and I think everybodhsaw that.” Norton says he hopes the project will be able to returnj somewhere down the line. The businesd plan that was putin place, he still could be a good fit.