PDA

View Full Version : Another US company going Bye Bye



jmig
December 15th, 2010, 03:36
This is from AVWebAlert:

TELEDYNE-CONTINENTAL BOUGHT BY CHINESE INTERESTS (http://www.avweb.com/avwebflash/news/TeledyneContinentalMotors_SoldToTechnify_AVICInter national_China_203788-1.html) http://www.avweb.com/newspics/tcm.jpg Teledyne Continental Motors has been sold to Technify Motors, a subsidiary of AVIC International, a Chinese-based holding company with diverse business interests in the aerospace sector. The sale price, according to AVIC and Teledyne Technologies, was $186 million and terms of the sale included a commitment to remain in Mobile, where Continental has been on the former Brookley Air Force base since the 1960s.
The sale will result in an infusion of new capital to rapidly develop the diesel technology Continental bought from SMA last spring, for both the Chinese and the international market, according to Teledyne's Jason VanWees, Teledyne Technologies' vice president for business development. He said that once the sale has cleared regulatory hurdles, it should become final by the end of the first quarter of 2011. Until then, Teledyne will continue to oversee TCM.
VanWees said Tuesday that AVIC executives met with Mobile city officials recently and committed to keeping TCM on its large Brookley site, where it shares a complex of former military facilities with a number of aerospace companies on what is now Mobile Downtown Airport. He said AVIC is also impressed by other business interests in the Mobile, including a potential EADs plant to build A330 tankers for the U.S. Air Force and an expanding ThyseenKrupp steel mill.
Although TCM's business has fallen off dramatically since 2008, it has remained in the black, but only through aggressive cost control. TCM's sales represent only a tiny fraction of Teledyne's $1.8 billion in revenues but, according to VanWees, as the corporate parent has acquired more technology companies, aerospace manufacturing is not considered its core competency.
Of the 34 acquisitions Teledyne has done, most are in the electronics and instrumentation segment, with a smattering of defense-related businesses.
"You have to an international strategy. We're not an aviation company," VanWees added. He said that with its extensive business relationship with companies like Boeing and Honeywell, AVIC represents a much better fit for TCM.
One immediate goal, says VanWees, is an infusion of capital to rapidly develop the diesel technology TCM bought last spring from SMA. Although no one is sure of the timing, the Chinese general aviation market is seen as a significant growth opportunity and the diesel engine could be pitched into that market in the two- to five-year time frame.
"We've been talking to the OEMs and most of them would like to have a diesel engine," VanWees said. As for keeping the plant in Mobile, VanWees said AVIC has made a strong commitment to do so.
"This is Chinese ownership, no doubt. We've got a great low-cost lease at the former Brookley. How are you going to build a fully FAA-certified manufacturing facility in China? Why do that?" he said.
VanWees told AVweb that the current TCM management team will remain in place and that neither company expects any changes before March and perhaps not after that, either.
Although capital will spur the diesel development, VanWees said TCM will continue to face the challenge of high-mix, low-volume manufacturing, because the stability of the business depends on the legacy aftermarket. But the growth will likely come in the international market with new products.
"I don't think the plant is ever going to look like a car plant, where you have only a bunch of robots touching things," VanWees said. Nonetheless, TCM has invested in new manufacturing and quality control technology and is expected to continue to do so.

Lionheart
December 15th, 2010, 06:41
Scary how fast it is all happening...

Garage sales in America. Huge corporations. Buy them while you can!

Bone
December 15th, 2010, 06:55
The positive thing about China owning so many US based companies, properties, Treasuries, and other infrastructure type entities, is that they have a vested interest in the long term success of the US.

beana51
December 15th, 2010, 07:18
Its De Ja Vu all over again....some here can remember when the Good Ole US, sold JAPAN STUFF,in those years prior to Pear Harbor...We got it back in Spades!!....One more nail in American productivity,and many more jobs ...lost!!....to list all the things America used to produce on here ,would be PAGES of Items and services,no longer American........Each has their own opeion,with this...mine is simply..YUCK!!http://www.sim-outhouse.com/sohforums/images/icons/icon13.png

Cazzie
December 15th, 2010, 07:34
What goes around, comes around. China already has more unemployed college graduates than the USA and as the cost of living keeps rising there. Soon they will seek cheaper goods and productivity will be waned off to some lower income country. It happens when a populace gets lazy. The US got lazy during the 1970s, then it got stupid in the 1990s with NAFTA and GATT.

Caz

n4gix
December 15th, 2010, 09:58
Hah! Mark my words: Before much longer China will begin outsourcing jobs to the U.S.

n4gix
December 15th, 2010, 10:00
Its De Ja Vu all over again....some here can remember when the Good Ole US, sold JAPAN STUFF,in those years prior to Pear Harbor...We got it back in Spades!!....One more nail in American productivity,and many more jobs ...lost!!....to list all the things America used to produce on here ,would be PAGES of Items and services,no longer American........Each has their own opeion,with this...mine is simply..YUCK!!http://www.sim-outhouse.com/sohforums/images/icons/icon13.png



terms of the sale included a commitment to remain in Mobile, where Continental has been on the former Brookley Air Force base since the 1960s.



What loss of jobs are there, really?

Willy
December 15th, 2010, 10:41
Give it a few years. Those commitments don't mean much where making money is concerned. A few years ago Remington Arms in Ilion NY bought Marlin Firearms in North Haven CT with such a commitment. Marlin had been in Connecticutt since 1870 and was very much in the black. First thing Remington did was run Marlin's quality into the ground trying to increase production. Then this year, they shut down the Marlin plant and moved production to their Ilion facility, laying off all the Marlin employees without giving them the option of moving to NY.

Now they've announced that they're moving another company they bought, Bushmaster, to Ilion. A commitment to keep Bushmaster in Maine was also made.

Commitments.. yeah right...

beana51
December 15th, 2010, 10:51
We do not know that for sure...certainly management jobs will change,so too operations to be effected by a foreign power.So they throw us a Fortune cookie!.They the Chinese have the power of the purse,in fact the whole US now to be included..we are still going thru the Japanese experience,.we all know they have been siphoning American jobs for years now!.Our currant unemployment rates surly reflect that,as do our Rust Bucket cities!!...But the real point ,to me ,is our Prestige...that my friend is being sold for 30 pieces of silver!!...Some do not mind, ..I do,and I trust you and all do also....The destruction of America industry,and the transfer of American Know how,bought,and sold! all this destruction of American pride, buy a thousand cuts!!....Any who,its beyond our control...ENJOY CHRISTMAS!!!...

HouseHobbit
December 16th, 2010, 02:54
Please, will the Last company out (of America)..
Turn off the lights..
Thanks...

Bushpounder
December 16th, 2010, 02:59
I can't comment on this because it pisses me off too much! Not really pisses me off. Perhaps a better term would be TOTALLY ENRAGES ME!!!

Don

Cazzie
December 16th, 2010, 04:30
Please, will the Last company out (of America)..
Turn off the lights..
Thanks...

kHs8zvNNAKQ

Bjoern
December 16th, 2010, 09:48
Buy them while you can!

I'll take Boeing.

Mickey D
December 16th, 2010, 10:11
Welcome to the world you guys. When you sit back and rest on your laurels, just as traditional UK industry did in the 50s,60s and 70s, the rest of the world steps in. It was the Japanese, Germans and French here. Might as well wave goodbye to your traditional industries. It's already too late.

Bone
December 16th, 2010, 10:59
I think the majority of the world is too hung up on Nationalism. The planet has to sustain all of us, and the world population needs to come to grips with that. I'm a US citizen, and although it may sound hippocritical for an American to say such a thing, I'm not the typical American. More often than not, I'm appalled by the ignorance of the "worldly" American who's only forray outside the US was to Cancun, Mexico.

magoo
December 16th, 2010, 16:51
The meek shall inherit the world. In this case, it seems the shop keepers shall buy out the warriors.