Dallas Works Memorial - History Tyco

Tyco closes Mesquite plant Tyco closing Mesquite plant, cutting jobs (Dallas Times Herald 10/25/01) Tyco Electronics' Power Systems division is closing its Mesquite manufacturing plant--once the city's largest employer--and eliminating 700 jobs. The cuts involve 600 manufacturing and 100 administrative positions, Tyco spokeswoman Maryanne Kane said. Power Systems will keep its headquarters in Mesquite and continue to employ about 700 managers and administrative workers there. A year ago the division had about 2,000 employees in Mesquite. The job cuts began Oct. 11 and are expected to continue for six months, company officials said. About 400 employees, including all 100 admini- strative workers, already have been let go, Ms. Kane said. Tyco is negotiating severance packages for all manufacturing workers with the Communications Workers of America Local 6260, she said. "It's so much more than just jobs," Chamber of Commerce president Terry McCullar said about the closing. When it was owned by AT&T the Mesquite plant was the first American company to win Japan's Deming Prize for manufacturing quality, Mr. McCullar said. "We're quite proud of those folks and their accomplishments," he said. Mr McCullar said he is optimistic that Power Systems workers will be able to find work with other Mesquite companies. Tyco has not said what it plans to do with the plant, located at 3000 Skyline Drive, near Town East Boulevard. "Our hope is that someone will pick it up," Mr. McCullar said. Power Systems, which makes equipment that powers telephone networks and computers, is a division of Tyco Electronics, based Harrisburg, Pa. Tyco, itself a unit of Bermuda-based Tyco Inter- national Ltd., bough Power Systems from Lucent Technologies Inc. in December for $2.5 billion. Tyco said the Mesquite plant wasn't a good fit with its other facilities. "It just doesn't work; it's just way too big," Ms. Kane said. "It's 1 million square feet. It's also stand-alone." The Power Systems job cuts are the second this year. About 600 management workers were cut after Tyco bought Power Systems because the jobs duplicated existing company positions, Ms Kane said. Tyco International stock went up 78 cents Wednesday in trading on the New York Stock Exchange, closing at $49.80