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Raytheon picks Tucson as HQ of combined 'Missiles & Defense' division

Leaked company memo outlines plans after merger with United Technologies

Raytheon will headquarter its new division combining former Missile Systems and Integrated Defense Systems in Tucson, a company leader said in an internal email Friday. The company has not made a public announcement, and is not intending to do so until the close of the pending merger with United Technologies, another defense contracting giant.

The "combined IDS-RMS business will be known as Raytheon Missiles & Defense and our headquarters will be in Tucson," said Wes Kremer, the company vice president who now heads Missile Systems and was announced late last year as the pending chief of the new corporate division.

That section was provisionally named "Integrated Defense and Missile Systems."

Raytheon has had four main business divisions: Missile Systems; Integrated Defense Systems; Space and Airborne Systems; and Intelligence, Information and Services. When the merger takes place, RMS and IDS will merge into one business and SAS and IIS will be folded into another. With the Rockwell Collins and Pratt and Whitney divisions from United Technologies, the new company will have four main business after the reorganization.

The combined IIS and SAS division will be named Raytheon Intelligence and Space, and will be headquartered in Arlington, Va., after the merger, the internal memo said.

Information about the changes, including a copy of the corporate memo, was provided to TucsonSentinel.com by several sources within Raytheon who were not authorized to speak to the press.

Those changes will take effect after the merger is approved by the federal government, which is expected early this year. The merger will result in the world's second-largest aerospace and defense company, Raytheon Technologies Corp., trailing only Boeing in size.

"At this time, we have no plans to relocate programs or business area/product line leadership, and we do not expect the announcement of a new headquarters location to result in many (if any) personnel relocations," Kremer wrote. "Our goal is to minimize any disruption to our employees, customers, suppliers or business partners."

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"In addition to the Tucson headquarters, the business remains fully committed to our current large-scale operations in Alabama, California, Massachussetts, north Texas, and Rhode Island, as well as to our operations in several other key communities and customer centers around the world. Our landed company names, Raytheon Emirates and Raytheon Saudi Arabia, will remain unchanged," he wrote.

"Please remember, this business name and headquarters are pending the close of the merger," Kremer wrote. "We will publicly announce the new name with our brand upon merger close."

Kremer took over the Missile Systems division last March, overseeing some 13,000 employees. He succeeded Taylor Lawrence, who headed RMS for 11 years, in the post.

Raytheon's Tucson facility develops and manufactures a variety of missiles, including a new nuclear cruise missile, the Standard Missile-2, SM-3 and SM-6 interceptors, and a deal with Norway's Kongsberg, with plans to assemble and test that company's Naval Strike Missile in Tucson.

With $16 million in incentives from Pima County for the contractor, Raytheon has been in the process of adding about 2,000 jobs here over the next half-decade. The county and Pima Association of Governments have invested about $33 million in the company's expansion here, purchasing land for a buffer zone and constructing a new roadway near the factory, south of Tucson International Airport.

Raytheon reported that it had about 9,600 workers in Tucson in 2017. In 2009, about 12,140 were employed by the company here. In early 2013, Raytheon reported 10,300 local workers.

In 2010, the company chose Huntsville, Ala., as the location for final assembly of the SM-3, with about 300 jobs created in a new plant on the U.S. Army's Redstone Arsenal. The company chose the location because of the large buffer zone and significant tax incentives unavailable in Arizona.

The company reported a strong fourth quarter Thursday, with net sales of $2.3 billion in the Missiles Systems unit, and $8.7 billion on the year for that division. The IDS unit reported $2 billion in fourth-quarter revenues. Overall, Raytheon had revenues of $29.2 billion in 2019.

Correction: Due to a typo, an earlier version of this story misspelled Kremer’s last name. The Raytheon exec is neither a co-inventor of the Manssiere nor on strike from H&H Bagels.

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Workers for missile manufacturer Raytheon.