Hughes to Build Spanish Facility to Help Diversify

Hughes Aircraft said Monday that it will build an $84-million commercial and industrial electronics plant in Malaga, Spain, part of a company strategy to double its non-defense business within a decade.

The plant will employ about 400 Spanish workers, about 25% of whom will be engineers. A company spokesman said Spain provided significant economic incentives, valued at up to half the plant’s cost.

Hughes said it will produce electronic connectors for circuit boards and cables at the facility, which will be located at a newly created technology park near the University of Malaga. Production at the 54,000-square-foot plant is scheduled to begin in 1992.

Among major defense firms, Hughes has embarked on the most ambitious effort to diversify into commercial markets. Chairman Malcolm Currie is seeking to increase commercial revenue to 40% of total sales, up from 20%, with defense revenue remaining level.

The new Spanish facility will be operated as a subsidiary of Hughes Microelectronics Europa Ltd.