Hand Held Products moving manufacturing operations to China; 290 to lose jobs

By: Kathleen Barran / The Citizen.

Thursday, August 7, 2008 6:56 PM EDT

Production workers at a Skaneateles Falls-based technology company will be facing job cuts over the next year.
HandHeld Products, a member of Honeywell International's Security Group, will be moving its manufacturing operations to Suzhou, China, said Kevin Jost, vice president of security strategy for Honeywell and former chief executive officer of Hand Held.

"It is our intent to transition manufacturing over the next nine to 12 months. When we are done a year from now, 290 people will be without a job," he said.

Jost said he announced the decision only today, shortly after they had decided. Honeywell will offer these employees a chance to post for positions in other jobs. The company employs about 663 workers here.

The impact on the rest of HandHeld's employees -- technical and marketing people--will be minimal.

"We intend to remain a major presence in upstate New York," he said, meaning the Skaneatles Falls area. "The business is growing nicely.

"This is really about the globalization of the world. It goes back to nothing related to the current economy. It has to do with what our competitive position is."

Jost explained that the parts involved in the supply chain base for the Hand Held products, their technical partners, are already located in the Asian region.

"It has to do with the whole macro competitive environment," Jost said. "If we don't respond, we'll find ourselves behind."

Hand Held's major competitors are Motorola and Intermec, he said.

Honeywell recently acquired the production facility in Suzhou, which manufactures similar products.

"It is unclear if the State of New York or the people of Skaneateles Falls were given a chance to make their case, but it is very clear that the workers whose jobs are on the line deserve to be heard," said U.S. Senator Hillary Rodham Clinton (D-N.Y.) in a press release on Thursday.  "Tomorrow I will send a letter to the CEO of Honeywell requesting a meeting to discuss how and why this decision was made, what can be done to secure an alternative to this drastic decision, and Honeywell's long-term plan for the 250 jobs that remain at the Skaneateles facility." 

Jost said that the company would try to help those employees affected to find new employment.

Hand Held's image-based technology has been applied to retail, health care utilities, industry data collection, and transportation logistics., with about $285 million in sales in 2006. It was acquired by Honeywell in October of 2007 in a $390 million acquisition.

The 36-year-old Hand Held is known for Adaptus Imaging Technology-equipped bar code scanners and Dolphin series of wireless computers used for asset tracking and supply chain management applications.

For the full report, read Friday's edition of The Citizen.

The Citizens' Say

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There are 8 comment(s)

Unknown... wrote on Aug 8, 2008 7:52 PM:

" Oh, how nice that Hillary wants to have a word with the CEO of Honeywell. A lot of good that would do. If she REALLY wanted to do something worthwhile, she would get to work to repeal the NAFTA agreement. But none of the politicians have a set that big. Honeywell is a done deal, and nothing will change their minds. "

2076 wrote on Aug 8, 2008 11:28 AM:

" Did anyone notice that the address was "Vision Drive"??? Who's the rocket scientist that came up with that name??? oxy moron or what?? "

ElbridgeFool wrote on Aug 8, 2008 11:22 AM:

" Well we the people of New York are paying our taxes and electing these nimrods who keep this state the most expensive to do business in. The constitution shows us we can revolt if things are badly done or badly governed. Lets Revolt now.... get 1 million people to stand in the way of honeywells driveway and stop there business now... "

horseradish wrote on Aug 8, 2008 7:10 AM:

" the people of that area should riot. force their hand. take away any and all tax and other benefits that they receive from this country, state, county and local municipalities.

protect our jobs and our country, and not our corporations who run away when they find some cheaper slut. "

blueyankee443 wrote on Aug 8, 2008 6:54 AM:

" Well.another American Company coming to
China.Not far from where I am living.Ye
t here the people work at least a total
of ten and twelve hours a day.and Satur
day and Sundays.Sometimes they have one
day off a week.If they have office work
they can work ten twelve hours and have
Sturday Sunday off.The bus fares are co
stly and the riding times can be long.
Here the company can save much money,as
a write off,well as only having to pay
the employees here in RMB(Yuan).even as low as 500 and 800 yuan a month,not
by the week.Here most everything is pai
d on a salary basis.Workers here are po
or at these wages.Here the company can
make a good profit,and pay so little for wages,and get much money in return
for being a International Company with
Interest in the U.S..There is a friend
of mine here whom does this,and he is
very wealthy,having his company in both
countries,and he has to pay his employe
es here very little salary. This is where you come when you want to thrive
as a company,and where paying U.S.worke
rs top dollar is a loss. It is an opinion,this company wants business tax
deductions from the states,and to pay
low wages in China.They have no choice
but to turn a profit here in China.They
take advantage of the people in both countries,and still gain tax breaks in
the states.This company is profit seeki
ng adventurers,and not interested in the wealth and care for the states. "

karl wrote on Aug 8, 2008 12:08 AM:

" Greedy, treasonous pigs!
Turning your backs on the people of America--YOUR NEIGHBORS!!!--right when they need you most!
I hope the Chinese air and water give you all cancer!
PIGS! "

rmg13021 wrote on Aug 7, 2008 8:40 PM:

" Treason... "

justventing wrote on Aug 7, 2008 7:51 PM:

" I hope this isn't a trick for the company to get tax breaks. It's happened before, a company says it’s going to China, then the states people presses for them to stay, giving them many tax breaks, and then the company stays. If not I say let them go, BUT I hope nobody buys buy their products and the state imposes a very hefty tariffs on all their imported items. Shame on you Honeywell. "

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