Boeing reorganizes to strengthen defense business

The Boeing Co. is merging two of its business units to better integrate its solutions for Defense Department contracts, the Chicago-based company announced July 10.

The new unit, Boeing Integrated Defense Systems, will be a $23 billion business and represents the merging of the company's space, defense, government, intelligence and communications capabilities, which had been split between the Space and Communications division and Military Aircraft and Missile Systems group.

James Albaugh, president of Space and Communications, has been named president and CEO of the new unit, which will be based in St. Louis and have 78,600 employees worldwide.

"Integrated solutions - joining network-centric information with integrated military air, land, sea and space-based platforms - is the direction modern defense systems are moving," said Phil Condit, Boeing's chairman and chief executive officer. "We are aligning our business today with the way we believe future systems are going to be designed, acquired and maintained."

Integrated Defense Systems will have operations in St. Louis, Southern California; Seattle; Houston; San Antonio; Washington, Huntsville, Ala.; and the "space coast" of Florida.

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