October 21, 2004, Seneca Falls, New York…ITT Industrial Products Group announced today that they had concluded their strategic review of Seneca Falls Operations.
In announcing the results, William Taylor, Acting President of ITT IPG said, “Since targeted short term improvements have been made, and assuming that we can continue to improve our cost and competitive position within the marketplace, we have reached the conclusion to continue operations at Seneca Falls Foundry and Machine Shop.”
Taylor continued, “Significant initiatives have been undertaken to improve the overall financial and operating performance of the Seneca Falls Operation, many of which are on-going and need to be achieved and expanded upon to help solidify our future in the area. Overall performance has improved thanks to employee efforts, but much work still needs to be done to ensure we remain competitive and deliver results in line with corporate, market and customer expectations.”
Now that the Strategic Review Process has been concluded, ITT plans to make some targeted investments in the foundry to help support managements’ efforts in improving operating performance and results. These investments are likely to include new LIJS mold handling equipment, roofing improvements and select equipment enhancements. Taylor said,” The Foundry has proven to be a valued asset this year in meeting customer service requirements for both IPG and our sister companies.”
The move of the Engineered Products Division operation from Bayard Street to the Fall Street campus will go forward. Ron Golumbeck, VP - Human Resources said,”We have successfully concluded talks with Empire State Development officials regarding the terms and amount of funding available to support the EPD division move. Their funding commitment will be tied to both the operational move and an investment in select Research and Development initiatives.”
The move is expected to be completed by September, 2005.
Ongoing discussions continue with IPG’s energy transmission provider, NYSEG, in an effort to reduce costs for energy transmission. Golumbeck is hopeful that these talks will be finalized before year-end when the ITT IPG contract for energy transmission renews. Golumbeck added, “Energy cost reductions remain a critical component in terms of our marketplace competitiveness.”
The Seneca County Industrial Development Authority recently committed to future tax relief. In addition the town of Seneca Falls assisted ITT with water and sewer initiatives that should benefit the operation.
Golumbeck thanked the IDA, state and local officials for their assistance, “We appreciate everyone’s efforts. Officials for the town of Seneca Falls have assisted with water and sewer initiatives that should continue to benefit our performance.
State Senator Michael Nozzollio continues to press for a State Member Grant, a key funding initiative which will support capital investment in research and development as well as other programs.
Bill Taylor thanked the senator. “Senator Nozzollio has been a major advocate on our behalf and we sincerely appreciate his leadership and guidance.”
Bill Taylor stressed that IPG’s American based manufacturing and specifically New York based operations will continue to be challenged. “What’s happening in our marketplace, as you might expect, is that more business has shifted overseas and the price we charge for our products is under increasing competitive pressure. Our future must include a combination of international sourcing and competitive local manufacturing if we are to remain a viable business. Our increased focus on global sourcing is one of the best ways to preserve jobs in Seneca Falls. While some local employment reductions may be required over a period of time, particularly in the Foundry and Machine Shop, every effort will be made to utilize attrition and other voluntary reductions instead of layoffs.”
Taylor went on to thank all involved. “Our progress to date is a result of the combined efforts of our employees, local and state government officials, and our ITT parent company. I want to thank every one for their efforts and outstanding commitment to the future of our business.”
ITT Industrial Products Group headquartered in Seneca Falls, New York employs 850 locally and 1700 worldwide. ITT IPG is one of the fluid businesses of ITT Industries. ITT Industries, Inc. (www.itt.com) supplies advanced technology products and services in key markets including: fluid and water management including water treatment; defense communication, opto-electronics, information technology and services; electronic interconnects and switches; and other specialty products. Headquartered in White Plains, NY, the company generated $5.63 billion in 2003 sales and employs approximately 39,000 people around the world.
In addition to the New York Stock Exchange, ITT Industries stock is traded on the Midwest, Pacific, Paris and Frankfurt exchanges.