ROME, July 24 (Reuters) - A Leonardo plant in

southern Italy will avoid a temporary closure caused by knock-on

effects of the crisis faced by Boeing ( BA ), unions said on Wednesday,

contrary to what the Italian aerospace and defence group had

announced a month ago.

The change of plan for the Grottaglie site was announced by

the leadership of the Fim, Fiom and Uilm unions after a meeting

the previous night with Leonardo management and other groups

involved.

There was no immediate comment from Leonardo which had said

in June that a four-month closure would be needed. Around 1,300

people work at the site.

Instead of the closure, workers will do reduced shifts

covering 50% of the normal activities with a temporary lay-off

fund helping to cover their wages, union leaders said.

An agreement was reached on the framework agreement for the

industrial diversification of the Grottaglie site where, by the

end of 2025, five Leonardo divisions will operate:

Aerostructures, Electronics, Helicopters, Leonardo Logisitics

(LLS) and Leonardo Global Solutions (LGS) .

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

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

million) in 2024.