Boeing Secures New Stocks Of Crucial Nuts And Bolts Used In 737 Max Production Amid China's Import Ban: Report

Boeing Co. BA has reportedly secured new stocks of crucial fasteners that hold the 737 Max aircraft together, helping the company continue production of the aircraft.

What Happened: The aircraft manufacturer was running low on its reserves of specialized nuts and bolts used to attach the landing gear of the 737 Max, Boeing’s top-selling aircraft. However, the company has replenished its supply in recent weeks, Reuters reported on Monday.

The report cites two sources familiar with the matter, who say that the company has secured the stocks but has had to procure them at a higher cost. Dwindling fastener stocks could've halted the aircraft's production, the report suggested.

The company is taking steps to address the fastener shortages, a spokesperson for Boeing cited in the report shared. "We don't expect a near-term impact to commercial production," they said.

Why It Matters: Boeing has been dealing with issues in its supply chain recently, with a fire at a crucial supplier's factory in Pennsylvania impacting Boeing's production efforts.

The ongoing U.S.-China trade war has also impacted the company, with the Xi Jinping-led CCP halting imports of all Boeing aircraft into the country. Boeing's jets are returning to the U.S. as a result.

Elsewhere, Boeing's troubles keep piling up after it received a proposal from the FAA for an airworthiness report after the agency reviewed a report of a passenger getting stuck in the onboard lavatory aboard a Boeing aircraft due to a faulty bathroom latch.

However, investment bank Goldman Sachs has maintained optimism for Boeing, with analyst Noah Poponak maintaining a ‘buy' rating on Boeing stock, citing demand for products in Asia.

Price Action: BA is currently trading for $161.90, according to Benzinga Pro data.

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