General Dynamics [GD] yesterday said that after a comprehensive review of the structure of its Combat Systems business group General Dynamics Armament and Technical Products will be consolidated into General Dynamics Ordnance and Tactical Systems.
The company’s headquarters will be in St. Petersburg, Fla.
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Mark Roualet, executive vice president of the Combat Systems group for General Dynamics, said, “In the face of changing demand in some of our markets and increasing competition across the board, we have determined that consolidation is the best way to maintain the competitiveness and profitability of these lines of business. This move will enable us to achieve greater efficiencies in operations and create more opportunities for growth.”
Roualet said they believe the restructuring will improve the value of the products and the agility with which they respond to customers’ changing requirements.
Michael Wilson, president of General Dynamics Ordnance and Tactical Systems, will lead the combined organization.
The consolidation will result in the closing of the Charlotte, N.C., headquarters of General Dynamics Armament and Technical Products by the end of 2013.
“We anticipate some jobs will be eliminated and some jobs will be moved to St. Petersburg as these organizations are consolidated, but are not able to provide estimates of the number of either at this time,” a company spokesman told Defense Daily. Employees who leave the company as a result of the consolidation will receive severance benefits and transition assistance.
At this point, General Dynamics is not releasing estimates of the consolidation’s potential savings, a company spokesman said. However, those savings are expected to be “significant” and the move will position the new organization to be more cost-competitive on the domestic and international fronts, he added.
General Dynamics Armament and Technical Products designs, develops and produces weapon, armament and vehicle survivability systems for the U.S. military and its allies; high-performance composite structures for the commercial, aerospace and defense markets; and a wide range of axles, suspension systems and components for commercial trucks, military vehicles and industrial off-highway machines. The company employs approximately 2,500 workers at facilities in 10 states and several non-U.S. locations.
General Dynamics Ordnance and Tactical Systems is a leading manufacturer of large, medium- and small-caliber munitions, mortar weapons and systems, artillery projectiles, bomb bodies, propellants, non-lethal and force-protection products. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems. The company employs approximately 3,500 workers in the United States and Canada.