Conference 7.286::maynard

421.0. "Corporate HQ to move from Mill to MSO2" by PRAGMA::GRIFFIN (Dave Griffin) Fri Apr 02 1993 13:50

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Text of LIVE WIRE Message:

DIGITAL ANNOUNCES PLANS TO RELOCATE HEADQUARTERS TO MSO 
AND TRANSFER OPERATIONS FROM THE MILL TO OTHER SITES

Digital today announced plans to relocate the company's 
headquarters from The Mill to another site in Maynard and 
transfer operations located at The Mill to other Digital 
locations. The relocation process will begin late this summer and 
extend over the next two years.

In a series of meetings, over 2,100 Mill employees were told that 
the decision is part of a comprehensive real estate strategy and 
came about as a result of Digital's continuing analysis of the 
company's space requirements and efforts to consolidate 
activities into more efficient and cost-effective facilities.Most 
of the employees and operations now located in The Mill will be 
relocated to other Digital-owned eastern Massachusetts buildings.

The company's world headquarters will remain in the town of 
Maynard, but move to MSO2 on Powdermill Road, a building that was 
opened in 1991. "We considered the strong symbolism of The Mill 
as the location where the company began 35 years ago and the 
impact that our decision would have on the community," said Bob 
Palmer, president and CEO. "Our decision was difficult, but in 
light of the information we studied about cost of operation, 
functionality and location, we had no alternative but to begin 
phasing out operations in the complex and consolidating them 
among our other properties."

Bob has appointed a Mill Program Manager, Nancy Salustro. He has 
also asked a committee of senior managers to help her work with 
town, state and federal government officials, and outside 
developers to create plans for a reuse of the complex that will 
produce the maximum social and economic value.

Decisions about where to locate other activities from The Mill 
will be made by analyzing where they best fit with related groups 
at other sites and the effect the moves will have on enhancing 
Digital's ability to be customer-focused.

Senior managers explained how Digital's real estate strategy has 
resulted in more efficient, cost-effective facilities management 
first by moving out of leased facilities into Digital-owned 
buildings. The second tier of study is an analysis of future 
space needs and criteria for determining consolidation into the 
most efficient facilities. The Mill contains approximately 1.1 
million square feet of space and includes Corporate executive and 
administrative offices, laboratories and manufacturing 
operations. Efforts to date have resulted in the reduction 8.7 
million square feet of space and an annual savings of $219 
million.

The original Mill structure was built in 1847 by Amory Maynard 
and William Knight, principals of the Assabet Mills. Reorganized 
in 1862 as the Assabet Manufacturing Company, it supplied woolen 
cloth, blankets and flannels to the Union Army during the Civil 
War. In 1957, Digital began operations in 8600 square feet of 
rented space in The Mill. As the company grew, it occupied 
greater portions of the available space until the total site was 
purchased by Digital in 1974.