This a rumor 20 years in the making that is finally coming true. Standby for details!!!
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Wait... Honeywell owns the Olathe facility? I thought Honeywell paid for the construction of it back in 1998 and then sold it in order to lease it back because somehow that reduces expenses...
Did that never happen or did Honeywell buy it back?
It started in Tucson now expanding. Where will it go next?
This will continue as long as they show capability snd capacity. As an employee you may make out moving over. It couldn't get any worse.
April 21, 2015
Agreement further strengthens Celestica's aerospace and defense offering through acquisition of key capabilities
TORONTO, April 21, 2015 /PRNewswire/ - Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that Honeywell Aerospace has subcontracted to Celestica final assembly and test, and repair and overhaul (R&O) for certain product lines, including electric power, and air and thermal management systems at Honeywell's facility in Mississauga, Ontario, Canada. The assembly and test operations continue to be based at the Mississauga location, but are now managed by Celestica.
As part of this agreement, approximately 330 full-time employees from the Honeywell Mississauga location have joined Celestica.
"This agreement further strengthens the relationship between Celestica and Honeywell Aerospace and provides the platform for Celestica to deliver additional value to Honeywell," said Craig Muhlhauser, Chief Executive Officer, Celestica. "The operational and regulatory capabilities that Celestica has acquired as part of this agreement, combined with the skills and experience of the team in Mississauga, complement the broad range of aerospace and defense solutions we can offer our customers globally and further differentiates us in the marketplace."
“We own the facility. It’s centrally located. It’s got the ability to handle the additional work,” Honeywell spokesman told The Star.
Well there sure is plenty of un-used capacity in that facility.
But are they going to fix that badly leaking roof? They've taken taxpayer incentives before, maybe they'll dip-in again? Kansas is desperate enough to hand it over. Just like a successful hold-up with a "finger-gun" in the jacket pocket.
The Details
" The Honeywell Aerospace facility in Olathe is expected to gain what could be several hundred new employees over the next year to 18 months, the result of closures in Wichita and Washington state.
A Honeywell spokesman confirmed Friday that the company is centralizing its repair and overhaul operations and will move jobs from Wichita and Renton, Washington to Olathe. The Johnson County plant is just south of the intersection of Kansas Highways 7 and 10.
“We own the facility. It’s centrally located. It’s got the ability to handle the additional work,” Honeywell spokesman told The Star.
The Moneywell spokesman declined to say how many jobs are involved, but the Olathe Chamber of Commerce CEO said Friday it was his understanding that it’s “hundreds of jobs.”
“It is very important to us that they are coming to Olathe,” The Olathe Chamber of Commerce CEO said. “This only helps us solidify that Olathe is going to be an aviation hub for Honeywell.” LOL!!!!!
The Kansas PEAK program, which provides state tax incentives for companies that expand business operations in Kansas, was offered for 119 net new jobs coming from out of state, according to the division director at the Kansas Commerce Department. Additional information on those incentives was not immediately available.
The Olathe facility was built in 1998 as an aviation headquarters for AlliedSignal, which acquired Honeywell in 1999 and took the Honeywell name. It handles maintenance and refurbishment of aviation equipment and electronics and manufactures safety and flight control systems, including the so-called “black box” flight data and voice recorders.
It is a massive facility, designed for a large workforce that has never quite materialized, so it has excess capacity. Allied Signal had 2000 people there in 1998.
The Olathe Chamber of Commerce CEO said it was his understanding that the jobs are coming to Olathe in part because of the area’s strong labor force and lower cost of doing business.
The Kansas City Business Journal reported that the Olathe facility currently has about 550 employees, down from about 1,000 in 2008. The number of jobs moving from Washington state was not available. The Wichita Business Journal reported that about 175 employees are affected by the closure of that operation near Wichita Eisenhower National Airport.
A Honeywell spokesman said, Honeywell will move the Wichita operation to Olathe by the end of this year and the Renton operation over the next 18 months.
Regarding the Wichita move to Olathe, A Honeywell spokesman said in a statement, “This is not a decision we made lightly as we realize this, unfortunately, affects valued employees. We’ve provided employees with extensive notice and are also posting roles in Olathe, many of which include potential relocation assistance.”
Olathe’s Honeywell plant is not to be confused with the sprawling Honeywell Federal Manufacturing & Technologies facility in south Kansas City, which has about 3,000 employees. Honeywell manages the U.S. Department of Energy’s Kansas City National Security Campus, which produces non-nuclear components."
-1jad Thanks for the insight. I had not heard the theory that site consolidation would support more Celestia takeovers, but that makes the most sense of anything I have heard recently.
Meanwhile, Honeywell made an announcement about the new connected c---pit today, in an apparent attempt to divert attention about plant closings. More news coverage at 11.
Interesting that Renton and Wichita already got jobs from other Honeywell sites that shut down in 2013:
https://www.kansas.com/news/business/aviation/article1119244.html
They just keep moving the bodies from one cemetery to another. At least there's plenty of open ground still around Honeywell Olathe to bury them; at least until more tickey-tackey houses are built over it.
Honeywell Olathe has a long history of getting rid of older more expensive Electronic Techs in favor of younger/cheaper ones.
Consolidation of rooftops and exit of well compensated, older employees. It's probably also part of a strategy to make outsourcing of these facilities more attractive to a Celestica takeover. Give them more work (potential profit) to sweeten the pot. Watch for an announcement that Celestica will take over Olathe before the year is over. Corporate doesn't like "wrench turning" businesses.
Renton is also closing and moving to Olathe
This would be in line with the Coon Rapids site also closing