Sikorsky plant to remain open
SADSBURY >> Chester County’s Sikorsky helicopter plant will remain open — at least through 2020 — saving the jobs of an estimated 465 employees.
The decision reverses a June 5 announcement by plant owner Lockheed Martin that it would shutter the facility by the end of the year.
The public announcement came Wednesday night — in a tweet by Lockheed Martin President and CEO Marillyn Hewson, who said the company decided to keep the plant open while pursuing other work.
“It’s a good operation with an excellent workforce. We look forward to working with the government and PA Congressional delegation to find more work for this facility,” she said in her tweet @LockheedMartin.
No information was available from Lockheed Martin on a timeline for how long the plant will remain in operation.
The decision to reverse the closure follows lobbying from Chester County and federal elected officials, including President Donald Trump.
Hewson informed the president of the company’s decision to keep the plant open in a telephone conversation Wednesday, her second call with the president to discuss the issue. The president first spoke with Hewson about the plant closure June 14, asking her to reconsider the decision.
Trump applauded Wednesday’s decision, thanking Hewson for the decision in a tweet @realDonaldTrump, calling Lockheed Martin, “one of the USA’s truly great companies.”
Major programs at the Sikorsky’s Coatesville-area plant include: S-76 and S-92 production and completions and modifications and upgrades for the Canadian Maritime Helicopter Program aircraft. The S-92 is then completed in Stratford, Conn. as the VH-92A Helicopter — a helicopter Sikorsky has previously contracted with the Department of Defense to supply as part of the Presidential Helicopter program.
On June 10, the U.S. Navy announced that it had awarded Sikorsky $542 million to build six additional VH-92A helicopters.
The plant closure would have meant possible layoffs or transfers for employees in the coming months as work at the Chester County plant was moved to other locations.
Trump’s voice was not the only voice raised in opposition to Lockheed Martin’s announcement last month that it would close the plant by the end of the year. The announcement spurred county officials and elected officials in Washington, D.C., to react, as well.
The Chester County Commissioners quickly put together a task force comprised of local business and economic development leaders, working with representatives from the State Department of Community and Economic Development, the Governor’s Action Team, U.S. Rep. Chrissy Houlahan, D6th Dist., and U.S. Sen. Pat Toomey and U.S. Sen. Bob Casey.
The focus of the task force, commissioners’ Chairwoman Michelle Kichline said, was to “support employees, explore plans for the site and to look at how we can support the local economy and businesses affected by the shutdown.”
Kichline said in an interview Thursday afternoon that she received a call from Sikorsky on Wednesday evening letting her know about the decision.
“This was an example of government working together at all levels. In this day and age of partisanship, there really was no partisanship with this issue,” she said.
On Thursday morning, Chester County representatives reached out to Sikorsky’s human resources leadership “to let them know we are still here for job placement in the future if it’s needed,” Kichline said. Representatives from the task force will meet with Sikorsky officials on Monday, July 15.
“It’s a first step to continue to develop the conversation, get an update on their short-term plans and let them know how we can help to keep them here in Chester County,” she added.
The task force that was put in place to develop a rapid response for Sikorsky will not be disbanded, Kichline added.
“We are going to use it not only for Sikorsky but for all of our significant businesses,” she said, adding that the county will work on a regular method for working with employers in Chester County to get ahead of any possible downsizings.
Rep. Houlahan also got involved in the response as soon as plans to close the plant were announced, through phone conversations and a letter to Dan Schultz, president of Sikorsky.
In addition, she added an amendment to H.R. 2500 — the National Defense Authorization Act — to withhold 25 percent of Sikorsky’s funding for the Presidential Helicopter Program until a full explanation and report on how such the closure would affect national security was delivered to Congress. That amendment was approved by the House Armed Services Committee, June 13.
Houlahan said in a statement Thursday while she appreciates the news, she is concerned the decision is a temporary reprieve.
“I am concerned that Lockheed Martin and Sikorsky are playing politics with the livelihoods of people in our community who have worked hard to consistently deliver outstanding results,” she said in the statement, adding that she is calling for a sustained commitment to the facility.
“Today is a good first step, and I expect Lockheed Martin and Sikorsky to work with me and the PA delegation on concrete proposals for how to sustain work at this important facility. The talented workforce at this facility have consistently shown their dedication to deliver Marine One helicopters on-time and on-budget, and I will work tirelessly to support them,” she said.
Democratic U.S. Sen. Bob Casey also reacted to the news Wednesday night, saying in a statement that he was pleased that Lockheed Martin reversed its decision about the plant, but expressed concern about the lack of details.
“The Sirkorsky Coatesville employees deserve answers on the long-term viability of the plant and I look forward to hearing more from Lockheed Martin about a comprehensive plan to ensure livelihoods in Chester County,” the statement read.
Republican U.S. Sen. Pat Toomey said Thursday the decision by Lockheed Martin “provides short-term certainty for 465 workers, who were expected to either lose their jobs or be re-located later this year,” adding that he remains dedicated to supporting the employees.
State Sen. Andrew Dinniman, D-19th Dist. said in a statement Thursday that he is also concerned with the lack of details surrounding the deal.
“While, for the moment, it appears Sikorsky workers are protected, the strength of our region is reliant on a healthy and robust workforce. I view this announcement as simply the beginning of a comprehensive process, and I plan on continuing this conversation into the future to ensure Sikorsky’s temporary stay is permanent,” Dinniman’s statement read.
When Lockheed Martin announced that it planned to close the plant, it cited a prolonged downturn in the global helicopter market,” as well as the company’s need to “balance its footprint and workforce” with customer and market requirements.
Sikorsky’s campus includes three buildings. One of the buildings, called the Heliplex, is owned by the company, a Lockheed Martin spokeswoman told MediaNews Group in June, adding that current production has been consolidated into the Heliplex, while the leased facilities currently hold inventory.
At the time, the company said the landlords of the other two buildings had been notified that the leases will not be renewed when they expire later this year. There is no information available on whether that will change now that the plant will stay open.
Contacted Thursday morning, a spokeswoman for Lockheed Martin said the company has no additional information about the announcement.