Boeing will expand its Macon manufacturing site in Georgia, US, by investing $80m in building 747 fuselage panels beginning from 2018.

The company has announced the decision after ending its agreement with Triumph Aerostructures, a unit of Triumph Group.

Boeing will move work contracts from Triumph Aerostructures – Vought Aircraft Division to its own 220,000ft² Macon plant.

With the transfer, Boeing is expanding its jetliner manufacturing operations in south-eastern US while Triumph closes its business after reporting a loss of $152m in January.

As part of the deal, Boeing selected the Boeing Defense, Space and Security Macon facility for 747 fuselage panel work.

"The Macon facility provides us with a new source for metal fuselages as we work to address market demand and requirements for affordability."

Defence work is currently ongoing on at the Macon site and will be completed by next year. The work includes replacement centre wing sections for the A-10 Thunderbolt II and sub-assemblies for the CH-47 Chinook helicopter.

Triumph Aerostructures will complete other 747 structures work, including the empennage, floor beams and flight surfaces, is presently opening bids to selected suppliers.

Until earlier this year, the Macon site had been producing fuselage panels for the C-17 Globemaster transport airplane. By next year, Boeing will transform the site for commercial airplanes work.

Boeing plans to set-up a new advanced manufacturing production system at Macon plant, equipped with new tooling and equipment.

The company has temporarily reduced recruitment and after the transition, due to be completed in 2018, Boeing will employ upto 200 people.

Boeing Commercial Airplanes vice-president and general manager of 747 programme Bruce Dickinson said: "The 747 is an iconic airplane and a key part of our product strategy.

"We appreciate the many years of support provided by Triumph Aerostructures and its predecessors Vought and Northrop in building this great airplane.

"Looking forward, the Macon facility provides us with a new source for metal fuselages as we work to address market demand and requirements for affordability."

Over the next three years, Boeing will also invest in employee training, tooling and building modifications.