Hughes Unit Expected to Stay in Torrance
Hughes Aircraft is expected to announce today that it will not relocate its Torrance-based Electron Dynamics Division and the unit’s 1,200 jobs, an option that has been under consideration during a 10-month study about whether to remain in Southern California.
The company has considered moving the division, which produces electronic components for radars and satellites, to locations in New Mexico, Colorado or Arizona.
If Hughes announces that it will not move the operation, it could send an important signal that Southern California does not stand to lose every time a company considers moving out of the area.
Hughes said Monday it would disclose the results of its study today at a news conference at the Torrance City Hall. The use of city facilities was one strong indication, sources said, that the decision has been made not to leave the city.
Torrance Mayor Katie Geissert said she was not privy to Hughes decision, but said the city had attempted to entice Hughes to remain in Torrance during meetings in recent months. “They are major contributors to our economy,” Geissert said.
The Hughes division operates five facilities along Lomita Boulevard in Torrance, where it produces traveling wave tubes, among other products. The tubes, which are technically difficult to make, are a key component in high-power transmitters used in radars and communications satellites.
A Hughes executive said one problem with the Torrance facilities is the high cost of rent at the leased facilities. He added that the consideration of sites in other states was not unusual; during a relocation study, it is normal to examine the best alternatives to staying.
Last summer, another Hughes official said that the company was being “cautious” in its study and that the softening housing market in Southern California held out some hope of making homes more affordable for employees.
Hughes has expanded and relocated outside of California in the cases of more than a half dozen plants, while its California employment has dropped precipitously over the past several years.
