Hughes May Move Division Out of State; 1,200 Work at Torrance Plant

Hughes Aircraft Co. is studying whether to move a Torrance-based division with 1,200 employees to Colorado, New Mexico or Arizona, a company official said Friday.

But Hughes recently expanded the study to include recent economic changes in California that could encourage the company to decide to stay in the state, said James F. Roberts, director of materiel operations at the Hughes Industrial Electronics Group in Torrance.

He specifically mentioned a softening of the real-estate market that he said could make California housing more affordable for employees.

“We’re being extremely cautious,” Roberts said. A decision is not due until October.

Hughes and city officials met Aug. 1 to discuss the company’s plan. Two state Department of Commerce representatives also attended.

“We’re very anxious to retain Hughes,” said Torrance Mayor Katy Geissert, who arranged the session. “They’re a major employer. They’re very important to our economy.”

Hughes officials did not mention anything specific at the meeting that Torrance could do to retain the division, she said. “Basically, we said we stand ready to help in any way that we can,” Geissert said.

The study involves the Industrial Electronics Group’s Electron Dynamics Division on Lomita Boulevard. The division makes microwave devices for the defense industry and other markets. The Microwave Products Division, also on Lomita Boulevard, is not part of the study, Roberts said.

The sites being considered are Colorado Springs, Colo.; Albuquerque and an undisclosed location in Arizona, Roberts said. Officials in the three states are actively lobbying Hughes’ business, he said.

“These states offer pro-active assistance to facility relocation--be it environmental issues or education or whatever,” he said.

“They actively lobby and continue to lobby to attract businesses from other states, particularly California,” Roberts said. “A number of companies are unable to compete in California because of the high cost of living.”

If the division moved, some--but not all--of its current employees would be relocated, Roberts said. Hughes has operated in Torrance since 1967.

Assemblyman Gerald Felando (R-San Pedro), contacted Friday afternoon, said he was unaware of the possible move but was not surprised, noting changes in the aerospace industry.

The California business climate stinks, he said. “The more regulations and the more taxes we heap on them, the worse it will get.”