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Fri, Mar 23, 2007

Honeywell Closing NJ Aircraft Parts Plant

Work To Be Moved To NM

Honeywell International Inc., a key parts factory during World War II, has announced plans to close its aviation manufacturing plant in Teterboro, NJ.

The company will shift some operations elsewhere and then sell the property to a development company, Honeywell told the Associated Press Wednesday.

Honeywell spokesman Jim O'Leary said the company has "a proposed agreement" to sell the 68-year-old manufacturing plant to Catellus Development Group, a large-scale developer based in Denver.

Catellus confirmed to the AP an agreement was in place but declined further comment. Details of the deal such as number of jobs that will be affected or lost have not yet been disclosed.

The factory produces flight control equipment and cockpit displays, primarily for military aircraft. The plant employs 425 workers.

Manufacturing work will be transferred a factory in Albuquerque, O'Leary said. Over the next two years, engineering and office workers will be transferred to Honeywell's headquarters in Morris Township, NJ. The company is in negotiations with the United Auto Workers as to union worker placements and offers.

"The majority of the jobs from the Teterboro site will remain in New Jersey," O'Leary said. It has not been determined if the move will create more jobs at the Albuquerque plant, which employs 1,200 workers, he told the Albuquerque Tribune.

During World War II, the plant was a major provider of aircraft parts and employed 13,000 workers. The plant itself has had several owners, including Bendix Corp and aviation and automotive manufacturer.

The decision was made to close the plant after a routine review the company's real estate interests. Of the 875,000 square feet of building space, less than half is currently active, according to O'Leary.

This shift in operations will better serve customers and increase productivity, O'Leary said.

The 61-acre property is currently contaminated and Honeywell is actively working to decontaminate the site. O'Leary said cleanup work will continue during the sale and redevelopment process.

FMI: www.catellus.com, www.honeywell.com

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