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United Technologies Corporation (UTC)

United Technologies Corporation (UTC)

Industry: 
Conglomerate, Manufacturing
Value of USG Contracts: 
63958
Symbol: 
NYSE:UTX
States: 
CT
Country: 
USA
Contact Information: 
Sources: 

"United Technologies Corp. disclosed in regulatory filings Friday that one of its foreign businesses worked on the security system for the Paris branch of Iran's national bank, an entity singled out under U.S. economic sanctions against the Middle East country. Delta Security Solution's business with the Bank Melli Iran's Paris branch amounted to $7,582 in 2012 and 2013, a portion of which occurred after President Barack Obama signed an executive order last October limiting U.S. companies and their foreign subsidiaries from 'engaging in any transaction, directly or indirectly, with the Government of Iran.' According to securities filings, UTC reported sales of about $3.59 million over the past two years to banks, insurance companies, oil companies and embassies controlled or owned by the Iranian government. All of the sales were through foreign subsidiaries of the Hartford-based company, which declined to comment further on the sales. Though the sales amount to a sliver of UTC's annual revenue, they underline just how difficult a task U.S. companies and their overseas affiliates have complying with the expanded sanctions against Iran. In the past two months, a group of about two dozen companies — including Costco, Toyota, Oracle, Vodafone, Sony and FedEx — have filed similar notices... Jonathan M. Epstein, a partner at Holland & Knight in Washington D.C. who practices international trade law, said that the fact that UTC has ended the contracts should help it avoid sanctions. 'The winding down of something that was previously lawful and is suddenly unlawful would be a major mitigating factor,' he said, adding that the company's actions 'may very well just result in a warning letter.' The Paris-based subsidiary that did the security work, Delta Security Solutions, is owned by UTC Climate, Controls & Security. This year and last, it 'provided remote monitoring of the Paris branch's electronic alarm system as well as related maintenance services to verify the proper functioning of the branch's intrusion detection equipment,' the filings said. When the work contracts were signed in August 2010, neither the business agreements nor the services were prohibited by law, UTC said in its filings. In addition to reporting the business to the U.S. Securities and Exchange Commission, UTC Climate, Controls & Security filed this information with the Treasury's Office of Foreign Assets Control, as it has in all of these cases. Delta Security has terminated the contracts with the bank and 'does not intend to do any further business with Bank Melli Iran,' UTC said in filings. UTC also reported in April that another subsidiary sold fire safety equipment, including fire blankets, extinguishers, stands and spare parts, to the London office of the Bimeh Iran Insurance Company, another Iranian-controlled business. In February, UTC reported that two other subsidiaries, Simtronics and Water Mist Engineering AS, sold $3.51 million in fire detection and suppression equipment to the Pars Oil & Gas Company, a firm controlled by Iran. Also that month, the company reported that a foreign affiliate of Otis conducted service and maintenance at a number of Iranian 'diplomatic premises' in France, Kuwait and Hungary. That work amounted to $74,500." (The Courant, "UTC Reporting Business With Iran Despite Sanctions," 7/26/2013)

 

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"United Technologies Corp. says two overseas affiliates earned $630,000 as the company ended business with Iran. The aerospace and building systems conglomerate based in Hartford, Conn., disclosed in its annual report Thursday that its non-U.S. affiliates generated $3.5 million in revenue 'related to the orderly winding down of legacy business related to sale of fire safety equipment' United Technologies said it stopped new business with Iran in 2009. It also said non-U.S. affiliates of its Otis subsidiary serviced, maintained and modernized elevators at Iranian diplomatic premises in France, Hungary and Kuwait last year. The Otis affiliates earned $6,000." (Washington Post, "United Technologies discloses $3.5M in revenue for 2 overseas affiliates ending Iran business," 2/7/13)

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Carrier Corporation, a wholly-owned subsidiary of United Technologies Corporation, states it does business with Iran: "Delivering innovative solutions and trusted products for our customers in: Bahrain, Iran, Iraq, Oman, Qatar, Syria, Yemen." (Company Website)

United Technologies Corporation is also the parent company of three key defense contractors for the United States Military: Sikorsky Aircraft Corporation, Pratt & Whitney and Hamilton Sundstrand.

According to the Sikorsky website, "Sikorsky helicopters are used by all five branches of the United States armed forces, along with military services and commercial operators in 40 nations. Core U.S. military production programs are based on the Sikorsky H-60 aircraft: the BLACK HAWK helicopter for the U.S. Army and SEAHAWK® helicopter for the U.S. Navy. H-60 aircraft derivative aircraft perform multiple missions with other branches of the U.S. military. The CH-53E helicopter and MH-53E helicopter heavy-lift aircraft are flown by the U.S. Navy and Marine Corps to transport personnel and equipment, and in anti-mine warfare missions. Sikorsky is currently developing the next-generation CH-53K helicopter for the U.S. Marines. Sikorsky is the prime contractor in the U.S. Army's UH-60M aircraft program, which the Pentagon authorized for full rate production on June 26, 2007. The program calls for more than 1,200 of the newest BLACK HAWK aircraft during the next 25 years. In 2002, the U.S. Navy inducted the first MH-60S aircraft, the first all-new rotary wing aircraft to enter the service in a decade. The U.S. Navy's helicopter fleet will become all-Sikorsky by 2010, with the MH-60S helicopter and the MH-60R helicopter the only air platforms used." (Company Website)

Sikorsky is the manufacturer of the long-time presidential helicopter, "Marine One." (Sikorsky, "Sikorsky Submits VH-92 Proposal for Presidential Helicopter Mission," 1/26/04)

Pratt & Whitney From the P & W website: "Today, nearly 11,000 Pratt & Whitney military engines are in service with 27 armed forces worldwide, setting new standards for performance and dependability. With the best engine technology, world-renowned manufacturing techniques and a global service organization, Pratt & Whitney is completely focused on meeting the new demands of the 21st century. Pratt & Whitney currently produces the F135 engine for the F-35 Lightning II. This proven fifth-generation engine was selected by the Department of Defense as the best engine for the F-35 and is more reliable and cost-effective than adding an unwanted alternate engine. Learn why the F135 is the best engine for the F-35 at f135engine.com. Pratt & Whitney’s other military engines include the F119 for the F-22 Raptor, the F100 family that powers the F-15 and F-16, the F117 for the C-17 Globemaster III, the J52 for the EA-6B Prowler, TF30 for the F-111, and the TF33 powering AWACS, Joint STARS, B-52, and KC-135 aircraft. In addition, Pratt & Whitney offers a global network of MRO and MAS focused on maintaining engine readiness for our customers." (Company Website)

Hamilton Sundstrand Aerospace: "Hamilton Sundstrand's Aerospace business units provide technologically advanced systems, components and services for commercial and military aircraft and vehicles." (Company Website) Energy, Space & Defense: "Hamilton Sundstrand’s Energy, Space & Defense (ESD) business unit provides highly reliable, advanced technology solutions to a broad range of government and industry customers. ESD continues to bring innovative and integrated solutions to our traditional Space, Missile, Launch Vehicle, and Undersea markets, while seeking new applications for our advanced technologies in support of Army and Joint Services land-based forces, surface Navies, Renewable Energy Production, and the Nation’s Homeland Security needs." (Company Website)