Andrew Corporation, a global leader in communications systems and
products, will retain its existing satellite communications production
facility in Smithfield, N.C., after reaching a lease agreement in
principle with the prospective new owner of the property.
Andrew will utilize a 235,000 square foot section of the 750,000 square
foot building--about one-third of the space it now occupies--and will
continue to operate stamping, molding, paint, and packaging operations
for its global satellite communications business.
The facility is being purchased from the Channel Master bankruptcy
estate by Industrial Realty Group, a Downey, California-based company.
Andrew has extended its current lease through June 2007 and agreed in
principle to long-term lease terms that will be executed when IRG closes
on the facility purchase next month. Approval of economic development
incentive grants also is required from Johnston County and the town of
Andrew plans to invest in certain new manufacturing equipment and
facility improvements to improve workplace and operational efficiencies.
"With this unexpected lease opportunity, we have been able to develop a
long-term plan that enables us to meet our business objectives without
relocating from our existing facility," said Jude Panetta, group
president, Satellite Communications, Andrew Corporation. "This is very
advantageous to our business and our employees since we will not face
the disruption of starting an entirely new operation under a very
Andrew's existing lease was due to expire in December 2006 and, with the
bankruptcy court sale of the building expected to lead to redevelopment
into retail usage, the company explored options for relocation. In
December 2005, Andrew announced plans to build a new smaller facility in
nearby Wayne County, N.C., but the pending sale of the building to IRG
and its plans to retain the building for industrial use created an
unexpected and compelling option to lease a portion of the facility. By
avoiding the high cost of equipment relocation and retaining the
existing utilities infrastructure at the Smithfield facility, the
business case for remaining in Smithfield became more attractive than
"Officials from Wayne County, the city of Goldsboro, and Wayne County
Economic Development were extremely helpful and supportive during the
last several months," Panetta said. "We know that this change in
direction is a disappointment to them, but it is welcome news for many
others, especially our employees, customers, and the Smithfield
community. By staying in the same facility, we are able to make changes
that are needed to keep our business competitive without the risks and
complexity associated with a relocation of our manufacturing operations."
IRG has been active for several decades in the business of re-developing
large industrial sites throughout the country. Among its many portfolio
properties is the 10 million square foot, 4,000-acre former McClellan
Air Force Base in Sacramento, CA.
About Andrew Corporation
Andrew Corporation (NASDAQ:ANDW) designs, manufactures, and delivers
innovative and essential equipment and solutions for the global
communications infrastructure market. The company serves operators and
equipment manufacturers from facilities in 35 countries. Andrew (www.andrew.com),
headquartered in Westchester, IL, is an S&P 500 company founded in 1937.
Forward Looking Statements
Some of the statements in this news release are forward looking
statements and we caution our stockholders and others that these
statements involve certain risks and uncertainties. Factors that may
cause actual results to differ from expected results include
fluctuations in commodity costs, the company's ability to integrate
acquisitions and to realize the anticipated synergies and cost savings,
the effects of competitive products and pricing, economic and political
conditions that may impact customers' ability to fund purchases of our
products and services, the company's ability to achieve the cost savings
anticipated from cost reduction programs, fluctuations in foreign
currency exchange rates, the timing of cash payments and receipts, end
use demands for wireless communication services, the loss of one or more
significant customers, and other business factors. Investors should also
review other risks and uncertainties discussed in company documents
filed with the Securities and Exchange Commission.