Asarco looks to consolidate Phoenix and Tucson corporate offices

By Caroline Salls

Pittsburgh, Jan. 15 - Asarco LLC requested court approval to consolidate its Phoenix corporate office with its Tucson, Ariz., corporate headquarters, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Asarco said the current corporate office set up requires it to equip, stock and manage different workspaces and employ administrative personnel with overlapping job duties.

Asarco said the separation also results in the loss of countless work hours because employees are forced to commute between office locations for meetings and assignments.

The company said consolidation will increase efficiency, provide for more effective management and reduce costs.

To consolidate the Phoenix and Tucson offices, the company said it must first consolidate three separate Tucson offices into one.

The Phoenix office will then be consolidated into the new Tucson location.

Asarco said it has received an offer for a renewable 86-month lease at a Tucson location big enough to house all four current offices.

Rent on the new location will be $76,854 per month, and Asarco must pay a $103,983 security deposit.

The company is also required to submit an $850,000 letter of credit, which will be returned 10 days after it emerges from Chapter 11 bankruptcy.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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