Archive for Thursday, January 7, 1999

ALLIEDSIGNAL CONFIRMS AEROSPACE JOB SHUFFLE

January 7, 1999

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The company, which employs 550 people in Lawrence, plans to streamline the way it takes products to final delivery from production.

AlliedSignal Inc. confirmed Wednesday it was realigning its aerospace business -- a move that could cost some jobs at its Lawrence plant.

As part of the realignment, the AlliedSignal Electronic and Avionics Systems division that includes the Lawrence operations will get a new president.

The moves aim to save the maker of industrial and aerospace products between $30 million and $50 million annually and bolster free cash flow for 1999, it said.

The company confirmed the realignment could result in job cuts but declined to divulge further details regarding layoffs.

Late last month, spokesman John Bernaden told the Journal-World the company was studying a plan aimed at consolidating marketing and production of related products either in Lawrence or its new Olathe facility, but said it was too early to say how many jobs might be at risk. He echoed that Wednesday.

"We still do not have any final plans as to what we are doing in Lawrence," Bernaden said, adding the company aimed to make final decisions by April 1.

Under the scenario outlined last month, AlliedSignal would move jobs associated with its general aviation product lines from Lawrence, where it employs about 500 people, to Olathe.

In Lawrence, the company produces collision avoidance, communication and navigational systems, mostly for commercial aircraft. AlliedSignal was considering consolidating those general aviation products -- for business jets and other smaller aircraft -- in Olathe, leaving commercial air transport lines in Lawrence.

In Wednesday's announcement, the company said only that it hoped to streamline the way it takes products in its aerospace business to final delivery from production.

AlliedSignal said that the realignment comes on the heels of its ongoing internal study of the aerospace business. The study began in October and was spearheaded by President and Chief Operating Officer Frederic Poses.

As part of the plan, Robert Johnson, who has been president of AlliedSignal Electronic & Avionics Systems, which encompasses the Lawrence and Kansas City plants, will become president of AlliedSignal Marketing Sales & Services. He will be replaced by Frank Daly, who had been vice president of Commercial Air Transport Avionics.

In November, AlliedSignal confirmed the sale of part of its Lawrence operations to a Denver-based corporation that is moving the business and about 150 jobs to Ottawa.

-- Richard Brack's phone message number is 832-7194. His e-mail address is rbrack@ljworld.com.

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