TRW opens new Griffiss facility

CNY Business Journal (1996+), Jul 05, 2002 by Dickinson, Casey J

ROME - TRW Aeronautical Systems' new plant in the Griffiss Business and Technology Park opened July 2, the day after its parent company agreed to a buyout plan with Northrop Grumman Corp.

Northrop Grumman will pay $60 per share of TRW stock as part of the $7.8 billion deal. Northrop will assume $4 billion in TRW debt. The acquisition, if approved by federal regulators, will make Northrop the nation's third-largest defense contractor, behind

Lockheed Martin and Boeing. Northrop made a $47-per-share offer for TRW in February but was rejected by TRW.

The $13-million Rome plant will have a new name over the door, but it won't be Northrop. Last month, TRW and Goodrich Corp. signed a deal to sell TRW's aeronautics division to Goodrich for $1.5 billion in cash. That sale will proceed as planned, says Jay McCaffrey, spokesman for TRW. The sale of the Aeronautical Systems business is expected to close by the fourth quarter.

TRW began building its 110,000-square-foot plant about 14 months ago, says Charmaine Easie-Samuels, media relations manager for TRW Aeronautical Systems. The plant employs 200 and has a $10-million annual payroll. The building is designed to allow for a future 50,000-square-foot expansion. Employees began moving into the new building earlier this year.

TRW Aeronautical Systems manufactures electronic components used in aircraft such as the F-22 fighter and several models of Bell helicopters.

The Mohawk Valley TRW plant was formerly part of Lucas Aerospace, a company acquired by TRW three years ago. The business has been a part of Bendix, Allied, and Allied Signal over its 51-year history in the area. The plant previously operated at a location on Seward Avenue in Utica. That plant, says Easie-Samuels, had deteriorated and needed to be replaced with a more modern facility. Mohawk Valley EDGE has taken title to that property and plans to redevelop the parcel for future use.

Auburn is home to a TRW Electronics plant that employs approximately 400. The 66,000-square-foot facility manufactures keyless entry systems used in Chrysler, Ford, and Toyota vehicles. The keyless entry systems attach to a keychain and allow drivers to lock and unlock car doors at the push of a button. TRW's automotive division accounted for the vast majority of the company's sales. Last year, the division had $10.1 billion in sales, compared with $1.1 billion for aeronautics, $2 billion from space and electronics, and $3.2 billion from the systems division. Last month, TRW filed documents with the Securities and Exchange Commission for a possible spin-off of its automotive division. Northrop will likely sell or spin off TRW's automotive division by the end of the year, says Randy Belote, spokesman for Northrop Grumman.

Founded in 1901 as the Cleveland Cap Screw Company, the company became Thompson Products in 1926. In 1958, Thompson merged with the RamoWooldridge Corp. to form TRW. In 1999, TRW acquired the aerospace business of LucasVarity plc.