GE phasing out Lynn gear plant

LYNN – GE’s Lynn Gear Plant, built in 1942 to expand the company’s manufacturing capabilities during World War II, will be phased out by next October.
The facility, which made massive reduction gears for warships and submarines, was divided into two workforces ? nuclear and non-nuclear marine projects. Last June, GE sold the non-nuclear operation to Philadelphia Gear.
“The non-nuclear part of the Gear Plant was sold off at the beginning of the summer and the nuclear portion, at least what’s left of it, is being phased out,” Richard Gorham, a GE spokesman in Lynn, said Thursday. “The orders just aren’t there anymore for that kind of work.”
The Gear Plant made gears designed as parts for marine propulsion systems, primarily aboard U.S. Navy ships and submarines.
“The Navy has been transitioning to a different propulsion system, a different power source. Besides, they’re just not building as many ships and subs as they once did,” Gorham said.
The nuclear portion of the Gear Plant currently employs about 120 workers, mostly paid on an hourly basis.
“Nobody is getting laid off,” said Gorham. “Some of these people have the option to take a standard or early retirement package. If not, then we’ll find a home for them in the core aviation work that we have here.”
The remaining portion of the Gear Plant will continue to operate until all outstanding contracts are completed.
“We’re going to fulfill the orders we have on the books now. There are no new orders,” Gorham said. “The operation is going to evaporate in about 10 months from now, probably by October.”
Six years ago, the Gear Plant had about 300 employees in the 500,000-square-foot facility. The marine engine division was producing reduction gears for U.S. and foreign warships, including the Italian aircraft carrier Andrea Doria. Since February 2007, the Gear Plant workforce has been reduced by nearly 100 employees, mostly through layoffs and attrition.
The latest news regarding the fate of the Gear Plant did not surprise the Lynn workforce. In July, the company announced its intentions, which were discussed in meetings by the largest labor union at the Lynn facility, IUE-CWA Local 201.
GE Supply Chain Vice President Scott Ernest stated in a written communication on July 2 that part of the Gear Plant operation would be sold toPhiladelphiaGear. Ernest cited low volume and limited growth opportunities among the reasons for the sale, along with the fact that fewer ships and submarines are being built.
The deal with Philadelphia Gear did not include gear work contracts for nuclear propulsion military vessels. Rather, it represented the sale of some intellectual property and equipment, said Gorham, noting that GE will fulfill current gear orders related to nuclear-powered aircraft carriers.
IUE-CWA Local 201 President Jeffrey Crosby was unavailable for comment.