Spirit Aero to continue contract talks with union as strike looms

(Reuters) – Spirit AeroSystems (NYSE:) Inc said it will meet with the U.S. machinists union on Saturday to continue negotiations for a new contract, after workers rejected a proposed four-year deal and announced a strike.

Shares of Spirit were up 4.8% in afternoon trade on Friday.

The company, a crucial supplier for aerospace heavyweights Boeing (NYSE:) and Airbus, expects its Wichita production operations to remain suspended until an agreement is reached with the International Association of Machinists and Aerospace Workers.

The union did not immediately respond to a Reuters request for comment.

The Wichita site makes the entire fuselage for Boeing’s bestselling 737 MAX narrowbody jet and the forward sections for most of its other aircraft, as well as pylons for the Airbus A220.

A prolonged work stoppage at Spirit could impact the aircraft makers it supplies, eventually forcing them to slow or stop jetliner assembly at a time when both Airbus and Boeing are trying to ramp up production.