FARMINGTON, CT (WFSB) - United Technologies' CEO said that their new company will maintain a strong presence in Connecticut, despite one of the biggest corporate mergers of the year.
The Farmington-based company and Raytheon announced over the weekend that they will join forces to create an aerospace and defense powerhouse.
The merge means the loss of about 100 corporate jobs that are based in Farmington.
The rest of the workforce, more than 18,000, will remain in CT.
"We're obviously tremendously excited to announce that our boards this past weekend unanimously approved the merger of equals between UTC and Raytheon," said Gregory Hayes, Chairman and CEO, United Technologies.
Company officials held a press conference on Monday morning.
The combined company will be called Raytheon Technologies.
Representatives said the main headquarters will be in eastern Massachusetts.
"Raytheon Technologies will be headquartered in the greater Boston metro area," Hayes explained. "But, we want to emphasize, particularly for the benefit for United Technologies employees, this does not mean we're [getting rid of] operations in Connecticut and moving to Boston. In fact, Raytheon Technologies will maintain a strong presence in Connecticut for years to come."
The deal will officially close in the first half of next year after UTC completes its previously planned separation of its Otis and Carrier businesses.
"As a combined company, we'll deliver intelligent, cost-effective, innovative solutions across the full spectrum of aerospace and defense needs," Hayes said. "United Technologies in the process of separating into three separate companies."
Gov. Ned Lamont told Channel 3 that he spoke with UTC.
"Nearly all of UTC's 19,000 employees will remain in Connecticut with roughly 100 moving to the new headquarters," Lamont said.
However, the announcement still isn't sitting well with lawmakers on both sides of the aisle.
"This huge potential merger raises very sweeping and serious questions and doubts about its impact on the Connecticut workforce and economy, as well as our national security and defense," said Sen. Richard Blumenthal.
The new company's focus will be on hypersonics, which is vehicles or weapons that can fly faster than the speed of sound.
It will also work on intelligence and surveillance systems, artificial intelligence for commercial aviation and cyber security for connected planes.
A little over one year ago, UTC's chairman said the company was investing billions in research and development, partly due to President Trump tax cuts. UTC has also been given millions in state tax credits.
The tax credits are contingent upon job levels and investments.
Business leaders said many things factor into company decisions.
General Electric also moved its headquarters out of state to Boston; a move that some considered a statement on CT and its business climate.