Thiokol's operations in northern Utah will become the principal site of the defense contractor's new Defense and Launch Vehicle Division (DLV) following the closure and consolidation of some of its manufacturing facilities in Alabama and Nevada under a major restructuring program.
Spokesman Steve Lawson said Thiokol's plant in Huntsville, Ala., will be phased out and closed over the next 15 months, eliminating 320 jobs. The facility currently builds rocket motors for defense systems and space boosters.Thiokol's Space Operations and Science & Engineering activities in Huntsville will not be affected.
Thiokol's Omneco Inc. subsidiary in Carson City, Nev., with 50 employees, will be sold or divested over time, said Lawson, but he emphasized the company will not jeopardize current contracts. Omneco manufactures rocket-motor cases for various defense programs.
Lawson would not speculate on how many new jobs the consolidation would mean for Utah. "At this point we don't know," he said. "The company will evaluate the contracts at Huntsville and determine each on a case-by-case basis. Utah (operations) are certainly capable of taking the business."
Thiokol is headquartered in Ogden and has two facilities at Promontory Point: Space Operations and the DLV.
Lawson said the DLV was created with a single staff that will support multiple manufacturing facilities. He said the new Utah division will be responsible both in the United States and abroad for the company's Castor boosters for expendable launch vehicles, strategic missiles, air and ground-launched tactical missiles, flare and decoy devices and rocket motor "neutralization."
Thiokol president James R. Wilson said the closures and consolidations are intended to make the company more competitive in its defense and launch vehicle rocket motor business.
"This consolidation . . . will support our objective of continuing to be the market and technical leader in solid propulsion," said Wilson.
Thiokol will take a $61 million restructuring charge in its third fiscal quarter to cover the consolidation. The after-tax charge will total $45 million or $2.41 per share.
Lawson said the DLV's other facility in Elkton, Md., will continue to build STAR motor upper-stage and satellite-placement motors and other items.