ROME, July 24 (Reuters) - Italy's Leonardo has

reached an agreement with unions to avoid a planned temporary

closure of its Grottaglie plant in southern Italy related to the

slowdown in Boeing 787 production, the aerospace company said on

Wednesday.

The deal was first announced by the leadership of Fim, Fiom

and Uilm unions, after a meeting the previous night with the

company's management, then confirmed by Leonardo itself.

"The site will continue to be operational. The partial

reduction of production activities will only concern the Boeing

787 programme," the company said.

"Employees on this programme will work on a single shift

with partial recourse to the ordinary redundancy fund," it

added, saying the arrangement would run from July 29 until the

end of the year.

Leonardo had said in June that a four-month closure would be

needed. Around 1,300 people work at the site where central

fuselage sections are produced for the 787.

The company also said that new work for its helicopter

division was estimated to create up to 250 new direct and

indirect jobs in Grottaglie between 2025 and 2028.

Leonardo said about two months ago that Boeing's ( BA ) recent

production troubles could cost it some 50 million euros ($54

million) in 2024.