Undaunted by a failed leveraged buyout plan by management and seeking cheaper labor costs, Santa Barbara-based Computer & Communications Technology Corp. next month will relocate its magnetic recording heads manufacturing to its Tijuana plant and move its corporate headquarters to San Diego.
The moves will save "millions of dollars" per year, according to Everett Bahre, who is chairman, chief executive and president.
Only about 75 of CCTC's 300 employees in Santa Barbara will move to San Diego--all of them from the headquarters operation, Bahre said.
The company has had a 60,000-square-foot plant in Tijuana, employing 1,200 people, since 1972. The small manufacturing facility in Santa Barbara will be transferred south because the company has been "forced to reduce costs in every way we can," Bahre said.
"We compete in a worldwide market, and we can't compete effectively with these labor costs," he said.
The corporate headquarters move--which will begin next month and end in March--will allow "better utilization of support personnel by providing closer access to Tijuana," he said.