United Technologies Considering Sikorsky Spinoff

United Technologies, the owner of Sikorsky Aircraft, is moving its headquarters to Farmington from Hartford and is exploring splitting off Sikorsky from the rest of the company.

The move to Farmington is planned to occur later this year, according to the Hartford Courant.

United Technologies is discussing “strategic alternatives” for Sikorsky, including potentially spinning-off the company onto its own.

“As part of the portfolio review announced last December, we are exploring strategic options for Sikorsky to determine the best way to enhance its long-term success and create improved long-term value for UTC’s customers and shareholders,” said UTC President & Chief Executive Officer Gregory Hayes in a release.

The spinoff would allow United Technologies to focus on other aerospace and building industry endeavours.

The review of what to do with Sikorsky is expected to conclude by the end of the year, but no concrete timetable has been set.

Sikorsky had nearly 8,000 employees as of September 2014, according to the Connecticut Post. It also has a direct effect on many other local manufacturers that supply it parts and materials. It spent $542 million with Connecticut suppliers in 2013.

“Today, Sikorsky is a world leader in the design, manufacture and service of military and commercial helicopter platforms. It has unmatched technological capabilities, outstanding people and a strong backlog,” Hayes said. “Looking to the future, we are evaluating whether Sikorsky’s unique business as a rotorcraft OEM with a predominantly military customer base is best positioned as a stand-alone company, and whether a separation would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries.”

Image via Sikorsky