Hughes Weighs Moving Missile Unit to Tucson

Hughes Aircraft said Friday that it is studying the possibility of moving some or all of its Canoga Park missile operations to Tucson, a move that if taken could result in the transfer of most of the unit’s 3,200 employees.

The possible move, to be reviewed in a 90-day study, is a result of rising competitive pressures in the missile industry that is forcing Hughes and other major defense contractors to cut costs and consolidate.

“We must do everything possible and practical to become increasingly cost-effective and to enhance our competitive position,” T. W. J. Wong, president of Hughes’ missile systems group, said in a statement given Friday morning to employees in Canoga Park.

The Canoga Park facility is headquarters and design and development center for the missile systems group, while Tucson is the production center for the group and employs about 7,300 workers. A move would bring the two operations closer, facilitating communications and possibly reducing duplication of jobs, said Hal Watkins, spokesman for the missile group.

“It is likely that if a decision is made to move, it would be to move the whole thing,” Watkins said. He added, however, that Hughes, a unit of General Motors, would still retain the Canoga Park facility and find other uses for it.

Not all of the 3,200 jobs would be transferred to Tucson, Watkins said, since the study might determine that some jobs can be eliminated while some employees may decline to move to Arizona.