US ordnance and propulsion specialist Primex Technologies is to restructure its Redmond, Washington-based Aerospace & Electronics division, cutting the 770-strong workforce by 10%.
Primex, which was formed when Olin spun off its ordnance and aerospace divisions, says its Redmond operation "has not kept up with the competition in terms of being cost effective".
Other parts of the company have been slimming down over the past six months, it adds, "and it's Redmond's turn".
Aerospace and electronics account for about 25% of Primex's annual revenues.
Primex is also on the acquisition trail, having purchased Florida-based stand-off weapon developer CMS from DaimlerChrysler Aerospace, as well as actuator supplier Versatron, over the past year. Acquisitions in the aerospace sector are also being pursued, the company says.
Meanwhile, Primex has agreed a strategic alliance with Raytheon according to which it will act as a preferred supplier of precision-machined structures, projectile technologies and dispenser and electronics applications.
A separate agreement will see the pair work to increase mutual business and Primex says the deal could see sales to Raytheon grow by $630 million during its seven-year term.
Source: Flight International