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    Thursday, April 25, 2024

    Lockheed-Sikorsky deal closes

    Stratford -- Sikorsky Aircraft became a subsidiary of Maryland-based Lockheed Martin and, with that change, got its third new president since the beginning of 2015.

    Daniel Schultz is a 10-year veteran at Lockheed Martin and a former Marine Helicopter pilot. And while a number of people have predicted that Lockheed Martin eventually will move the Stratford company to more business-friendly environs, Schultz insisted the parent company is bullish on keeping Sikorsky right where it is.

    “I’m moving to Stratford,” he told reporters Friday during a media briefing inside of one of Sikorsky’s mammoth production hangers. “And if I’m not moving elsewhere, neither is anybody else. This is going to be a great company going forward.”

    Lockheed Martin paid Hartford-based United Technologies Corp. $7.1 billion for Sikorsky in a deal that was announced July. Sikorsky started 2015 with Mick Maurer as its president and then in April brought in Robert Leduc as UTC executives assessed what they wanted to do with Sikorsky.

    Now with the merger completed and Schultz at the helm of the company, Sikorsky becomes part of Lockheed Martin’s Mission Systems and Training business unit. Sikorsky employs about 7,000 people at the 2-million-square-foot plant and has nearly 15,000 employees in 11 countries.

    Schultz said the greatest strength of bringing the two companies together is that both have a tradition of innovation. Earlier on Friday, Schultz said he watched as a prototype of a unmanned. full-size helicopter took to the skies above Sikorsky’s sprawling corporate campus along the Housatonic River, controlled by someone using an IPad.

    With an unmanned helicopter, it doesn’t matter what the weather is, it doesn’t matter what time it is,” Schultz said. Though Schultz said the prototype that Sikorsky is working on is envisioned primarily as being used to deliver equipment and supplies, it is possible it could be used to deploy troops, as well.

    But even as Schultz was putting a positive face on the benefits of Sikorsky joining Lockheed Martin, he acknowledged a lot of hard work ahead. One of Sikorsky’s primary lines of business outside of providing aircraft for the military is selling helicopters that are used to transport oil industry workers to offshore oil rigs.

    And while the decline in gas prices has been a welcome relief for consumers, it has meant a decline commercial helicopter sales, he said.

    “Our business with the oil industry companies is very cyclical,” Schultz said. “And until we get into an ‘up’ cycle, we’ve assured all of customers that we’re doing everything possible to make our helicopters cost effective.”

    Marilyn Hewson, Lockheed Martin’s chairwoman, president and chief executive officer, said Schultz was chosen for his new job because he knows Sikorsky’s customer base, particularly those overseas.

    “I am confident he is the right person to lead Sikorsky at this pivotal time,” Hewson said in a statement. “Lockheed Martin and Sikorsky share a legacy of innovation and performance that has shaped the history of aviation for more than a century. Together, we are even better positioned to provide the best value for our customers, employees and shareholders.”

    The two companies got some good news even before the deal closed on Friday. The U.S. House of Representatives on Thursday passed the revised National Defense Authorization Act.

    The bill contains billions of dollars that will go to Sikorsky for work on a variety of projects. Among those projects are:

    • The continued development of the Combat Rescue Helicopter.

    • The development of three different Blackhawk helicopter models.

    • The continued development and procurement of the new heavy lift helicopter.

    • Work on creating a new Presidential Helicopter.

    U.S. Representative Rosa DeLauro, D-3, said in a statement Friday that the National Defense Authorization Act as currently structured “is a good bill for Connecticut.”

    “This legislation recognizes that we need to invest in both our defense and non-defense priorities,” DeLauro said. “The recently enacted bipartisan budget agreement gave Congress the blueprint for a balanced approach. This defense bill keeps us on that same path that and I am proud to support it.”

    Connecticut’s senior U.S. Sen. Richard Blumenthal said Sikorsky’s products “are the gold standard” and the company will benefit from being part of Lockheed Martin.

    “(Sikorsky) will now be supported by an innovative company fully focused on defense that can invest in the Stratford plant, taking advantage of Connecticut’s unparalleled skilled and competitive workforce,” Blumenthal said in a statement.

    The state’s other U.S. senator, Chris Murphy, said Sikorsky joining Lockheed Martin “is a bright step forward in preserving Connecticut’s manufacturing tradition and opening new opportunities for the future.”

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