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By Valerie Encina

WASHINGTON (Reuters) – Boeing said on Tuesday it was slowing deliveries of the 787 Dreamliner after the company discovered a new production defect, but said it still hoped to deliver 70-80 of the widebody jets on schedule.

The problem involves mounting the 787’s horizontal stabilizer, which is not a safety concern, made at a Boeing manufacturing facility in Salt Lake City, Utah, the company said.

Boeing will need to inspect all of its 90 Dreamliners in its inventory before shipping them, and it is expected to take two weeks to repair each plane, the company added.

Boeing said last week it had discovered that the shimming – the material that fills the gap between the fuselage – was improperly sized and did not meet specifications. On Friday, the company said it had canceled 787 tickets that were suspected of being defective for delivery.

Boeing said the issue would not immediately affect 787s in service, but the company could not say how far back the issue was or whether the Dreamliners currently in service with the airline would require a fix.

Boeing, which announced last week that it was able to increase production of the 787 from three to four planes, has said that 787 production has not been halted because of the problem.

“We have notified the FAA and our customers and are keeping them informed of our progress,” Boeing said in a statement, citing the US Federal Aviation Administration.

The rework will “impact 787 delivery times in the near term,” Boeing said, adding that the company believes it will deliver 70-80 Dreamliners this year.

Shares of Boeing, which fell 2.4% after the defect was revealed, were down 1% on Tuesday afternoon.

The latest problem with the 787 reflects production problems discovered in 2020-2021 that included improperly fitted shimming that caused paper-thin gaps between areas on the Dreamliner’s fuselage.

During that time, Boeing halted deliveries of the 787 at various locations and began operations in August after receiving an FAA-approved overhaul of the Dreamliners in the company’s inventory.

The company faced another 787 delivery halt in February after Boeing discovered a data analysis error related to a front-pressure giant head unrelated to the jet problem. In March, the FAA said it would allow Boeing to resume 787 deliveries, as the US planemaker raised concerns.

The latest 787 production shortfall comes as Boeing disclosed in April a 737 bracket installation issue that has delayed deliveries of the family of cash-generating narrowjets, including the top-selling MAX 8 model.

Boeing CEO Dave Calhoun in April called the problem a “serious flaw” that made it impossible for employees to visually assess it. The company said last month it had begun taking delivery of the rebuilt 737s.

(Reporting by Valerie Encina in Washington; Editing by Will Dunham and Depa Babington)

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