NCR confirms move to Georgia, in-sourcing of ATMs

NCR confirms move to Georgia, in-sourcing of ATMs
Tags: Bank / Credit Union, Manufacturers, NCR Financial Solutions, North America, Public Companies
June 1, 2009 - Tracy Kitten

Dayton, Ohio-based NCR Corp. confirmed this morning that it is moving its global headquarters to Georgia, despite a reported $31.1 million incentive from Ohio governor Ted Strickland. NCR spokesman Jeff Dudash says operations are already in the process of transition. In addition to the move, NCR will bring the manufacture of its SelfServ ATM in-house, and sales will be up and running in Columbus, Ga., by the fourth quarter of this year.

In a release issued by NCR this morning, the company says the move to Georgia came about "after extensive analysis of potential U.S. locations, using independent data on the available workforce, infrastructure, financial incentives and government tax structures."

"We're always adjusting our strategy," Dudash said of the company's decision to bring the manufacture of its SelfServ ATM line for North American sales back in-house. In January 2007, NCR signed a five-year deal with Milpitas, Calif.-based Solectron, later acquired by Flextronics, to outsource the manufacture of its ATMs and payment solutions in the Americas and its self-checkout systems globally.

"Last year we introduced the new SelfServ ATM family to North America, and as more customers introduce intelligent deposit and our sales grow, we believe that by manufacturing the ATMs ourselves, it gives us more flexibility and the ability to respond faster," Dudash said.

NCR would not confirm what percentage of its overall business comes from North American ATM sales, but ATMs continue to be a primary source of income for the company that has branched out in recent years into other lines of self-service, including self-checkout systems and DVD rental.

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NCR will continue to work with Flextronics for ATM manufacturing in other markets, at least for the time being. And other equipment lines, such as NCR's line of teller cash recyclers, will continue to be manufactured by Flextronics.

"The decision to consolidate functions in Georgia and build a technology-focused corporate headquarters campus is right in line with our business strategy to drive growth, improve our innovation output, increase productivity and continually upgrade our focus on the customer," said Bill Nuti, NCR's chairman and chief executive. "We will decrease time-to-market for innovative solutions, improve our internal collaboration, deliver next-generation employee education programs and lower our current operating costs. NCR is already benefiting from Georgia's pro-business environment through our existing operations. For example, we have recently created NCR University, working in partnership with world-class academic institutions in Georgia."

The news comes just two months after NCR announced job cuts and bonus reductions — adverse consequences of the downtrodden economy, NCR officials said. The 345,000-square-foot facility, which is being renovated by the city of Columbus with stimulus dollars, provided by the Economic Development Authority, and will be leased from the city by NCR, is expected to allow the creation of approximately 870 jobs.

"Georgia is a global destination for international commerce, and I know our vibrant corporate community welcomes yet another headquarters location of a worldwide leader such as NCR," said Georgia Gov. Sonny Perdue.

In total, NCR says it expects to create 2,000 jobs, both in Columbus and at the new corporate headquarters in Duluth, Ga. In Duluth, around 1,250 jobs are expected to be added. The entire corporate transition will take about five years, Dudash said, with the majority of the move taking place over the next 18 months.

Dudash could not confirm for how long NCR had been in discussions with Georgia officials about moving its global headquarters and manufacturing operations.

"Moving our global headquarters to Duluth goes along with some of the other lines of business we have moved to Georgia in the last 12 months," Dudash said. "For some time we've had our retail operations based out of Duluth."

Some functions, such as the company's data center and regional sales and service support, will remain in Dayton.

The move marks the end of a 125-year realtionship with Dayton, where NCR first spread its roots as the National Cash Register Company.