Retiring Chairman Scouts China Expansion

Jason Sandefur

Retired Precision Castparts chairman William McCormick is traveling in China to scout expansion sites for the company�s core jet-engine and industrial turbine business. The Oregonian reports McCormick, who retired last year as CEO, is looking for sites to locate manufacturing plants. Precision Castparts already owns a factory in Wuxi, China, which it recently expanded from 20,000 sq ft to 70,000 sq ft.
McCormick�s trip was prompted by a demand from the company�s biggest customer, General Electric, to cut costs by expanding in Asia. McCormick explained that GE plans to generate revenues of $5 billion in China by 2005 and spend $5 billion annually on supplies from China.
McCormick lamented the loss of manufacturing jobs to Asia while insisting the move was necessary.
�It�s sad, in a way, frankly, because it�s taking away jobs from the U.S. But we as a company have to do it to remain competitive.� \ �2003 FastenerNews.com