Boeing plans to relocate its headquarters to Virginia from Chicago.

Boeing introduced Thursday that it will transfer its headquarters to Arlington, Va., from Chicago, the place it has been based mostly for greater than 20 years.

The selection of Arlington, throughout the Potomac River from Washington, underscores the significance of the federal authorities and its regulatory our bodies to Boeing, which is a number one army contractor in addition to a significant producer of economic plane. The corporate relocated its Protection, Area and Safety unit to the Washington space from St. Louis in 2017.

“The area makes strategic sense for our world headquarters given its proximity to our clients and stakeholders, and its entry to world-class engineering and technical expertise,” Dave Calhoun, Boeing’s chief govt, mentioned in an announcement. The corporate, which didn’t give a timeline for its transfer, mentioned it deliberate to determine a analysis and know-how hub in Northern Virginia.

The transfer follows efforts by Boeing, the main U.S. exporter, to scale back prices. The corporate offered quite a lot of workplace parks, warehouses and unused land final 12 months, together with its business airplane headquarters in Seattle for $100 million.

Boeing has been attempting to regain its footing after a sequence of crises. Its best-selling 737 Max passenger jet was grounded in 2019 after two of the planes crashed, killing 346 individuals. It fired Dennis Muilenburg as chief govt that 12 months, saying he had didn’t stabilize the corporate. Boeing later reached a $2.5 billion settlement with the Justice Division over the 737 Max debacle.

Final week, the corporate reported a $1.5 billion loss for the primary quarter after experiencing weak income, larger prices and delays.

“Whereas the primary quarter of 2022 introduced new challenges for our world, trade and enterprise, I’m pleased with our staff and the regular progress we’re making towards our key commitments,” Mr. Calhoun mentioned in an announcement in regards to the monetary loss.

Boeing moved right into a 36-floor skyscraper in Chicago in 2001 after the town, Prepare dinner County and the State of Illinois promised $60 million in tax breaks and incentives over 20 years.

In its assertion on Thursday, Boeing mentioned it will keep a “vital presence” in Chicago and the encircling area, including that adjustments arising from the pandemic allowed the corporate to scale back its workplace wants and spend money on manufacturing and engineering as an alternative.