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 SEAL BEACH, Calif., Oct. 7 /PRNewswire/ -- Rockwell International Corp. (NYSE: ROK) announced today a series of facilities consolidations and other measures that will improve efficiency and lower costs to its government customers.
 The first initiative will move the engineering and administrative headquarters of its North American Aircraft Division (NAAD) from El Segundo, Calif., to Seal Beach, Calif. Some 1,300 employees will transfer to the Seal Beach facility.
 In addition, most of the company's Seal Beach-based Space Systems Division (SSD) employees -- some 550 -- will rejoin SSD's headquarters in Downey,C?alif.
 The consolidations will reduce Rockwell's operating costs by some $100 million over five years, primarily through the disposition of excess property and facilities. The move also will reduce the National Aeronautics and Space Administration's (NASA) operating cost through more efficient utilization of the Downey facility.
 "These consolidations will allow us to utilize excess facility space at Seal Beach and Downey, reducing Rockwell's operating costs, and consequently improving overhead rates which, in turn, will benefit our government customers," said Donald R. Beall, Rockwell's chairman and chief executive officer. "We will continue to responsibly allocate resources consistent with the realities of the changing government marketplace. While new government aircraft orders may decrease in the near term, we remain committed to investing in our aircraft business to ensure it is competitive in the global marketplace. In the last five years, Rockwell has invested some $200 million in its North American Aircraft business."
 He added: "This approach is designed to help build Rockwell's overall shareowner value."
 "NASA will see a direct financial benefit from our consolidation at the government-owned Downey facility," said Kent M. Black, Rockwell executive vice president and chief operating officer. "We estimate that NASA's savings in operating costs at Downey will add up to some $30 million over five years."
 For a number of years Rockwell has been resizing its facilities in Southern California to address changes in the government marketplace. Since 1987, the company has reduced the square footage needed at various facilities by about 24 percent, to 11.4 million square feet. When the facilities consolidation has been completed, Rockwell will have reduced its overall square footage in the region by 33 percent since 1987.
 Commenting on the company's presence in El Segundo, Sam F. Iacobellis, executive vice president and deputy chairman for major programs, said, "Our North American Aircraft business and its predecessor, North American Aviation, have had a long and rewarding relationship with El Segundo. The valuable property, almost 90 acres, was underutilized.
 "Rockwell has contracted with an outside consulting firm to assess the property potential," Iacobellis continued. "And we will be working closely with the city in examining possibilities for future development of the El Segundo site."
 Iacobellis added, "Although their workplaces will change, we expect that our employees will continue to live in the South Bay area."
 NAAD designs, builds and modifies military aircraft and supplies commercial aircraft aerostructures. Current activities include support for and modifications of the B-1B Lancer bomber; advanced technology programs including the National Aero-Space Plane (NASP) and the X-31 experimental aircraft; and manufacture of aerostructures for the Boeing 747 and 777 aircraft, the latter produced at NAAD's Tulsa, Okla., facility which will not be affected by this consolidation.
 Rockwell's SSD designs, develops, builds and integrates manned and unmanned space vehicles and supporting hardware for the National Aeronautics and Space Administration (NASA) and Department of Defense (DOD). SSD designed and built America's space shuttle orbiter fleet.
 Rockwell International is a multi-industry company applying advanced technology to a wide range of products in its electronics, aerospace, automotive and graphics businesses.
 -0- 10/7/93
 /CONTACT: William D. Mellon, 310-797-5819/

CO: Rockwell International Corp. ST: California IN: ARO SU:

JB-EH -- LA027 -- 1291 10/07/93 14:05 EDT
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Publication:PR Newswire
Date:Oct 7, 1993

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