Wednesday, April 24, 2024
Wednesday, April 24, 2024
Aerojet Rocketdyne said earlier this month it is preparing for the second phase of its "competitive improvement program," which will consolidate additional company facilities.
The competitive improvement program, established in 2015, is focused on cutting costs while improving efficiency. The company has said the effort is centered on three areas: footprint reduction, product affordability and reduced overhead costs.
Under the second phase, the company plans to consolidate its Sacramento, CA, Vernon, CA, and Gainesville, VA sites and close its Gainesville facility in the third quarter of 2018. About 170 positions based there will be relocated or eliminated. Those relocated will head to Huntsville, AL, or Orange County, VA, the company said.
The Sacramento site's defense-related program management, engineering and related support jobs will move to Huntsville, which is the headquarters of the company's defense work, by the end of next year. Most of the remaining programs will move to the company's space headquarters in Los Angeles, CA.
"Between now and the end of 2019, the company will complete its manufacturing commitments in Sacramento, and the site will become the Shared Services Center of Excellence," Aerojet Rocketdyne said. "In total, approximately 1,100 of the existing 1,400 positions in Sacramento are expected to be relocated or eliminated."
The company said it expects to add about 800 jobs in Huntsville through its consolidation efforts.
According to Aerojet, the CIP effort will generate $230 million in annual savings -- $145 million in the first phase and $85 million in the second -- when complete.
To produce those savings, the company expects to spend about $235 million on both phases of the effort, though it notes that figure does not reflect incentives it might receive from state or local governments or recoveries it might see through U.S. government contracts. Through the end of 2016, Aerojet Rocketdyne reported it has spent $47.3 million on the CIP.