Scott Nicholas
Aerojet Rocketdyne will consolidate and modernize additional facilities over the next two years under the second phase of a company-wide improvement effort.
Aerojet Rocketdyne said Monday it aims to merge operations in California and Virginia as well as expand its presence in Alabama with the construction of a new manufacturing facility in the next two years as part of the firm’s Competitive Improvement Program.
The Huntsville-based facility will be built to support production of the AR1 engine technology and composite materials, additive manufacturing processes and research and development efforts, the company added.
“We are two years into the first phase of our CIP affordability drive and the consolidation progress, and overhead cost reductions achieved to date have exceeded our expectations,” said Eileen Drake, Aerojet Rocketdyne’s president and CEO.
“This expanded CIP effort is expected to result in $230 million in annual savings once complete, inclusive of the $145 million from the first phase of CIP,” Drake added.
The company plans to move defense-related program management, engineering and support positions from its Sacramento, California, site to Huntsville-based facilities by the end of 2018 and transfer other programs and support functions to the company’s Los Angeles site.
Aerojet Rocketdyne will also shutter a Gainesville, Virginia, facility in the third quarter of 2018 as well as transform its Sacramento facility into a shared services center of excellence in 2019.
The company estimates that 1,100 out of 1,400 existing positions in Sacramento will be relocated or eliminated as part of the initiative.
