$35M Expansion for North Grumman

Thursday, February 19, 2004
Northrop Grumman Corporation recently broke ground on a $35 million West Bay Expansion Project during a ceremony at its Ship Systems sector's Pascagoula facility.

The project is the first phase of a $224 million expansion and modernization planned for the Pascagoula facility as part of its public/private partnership with the state of Mississippi.

The West Bay expansion will create more than 400,000 sq. ft. of new ship construction area to support Northrop Grumman's DD(X)Destroyer Program. The expansion is scheduled for completion in December 2004, in time for the first Coast Guard cutter keel-laying ceremony.

The event featured remarks by Northrop Grumman Ship Systems President Dr. Philip A. Dur, and a keynote address by Mississippi Lt. Gov. Amy Tuck. A turning of dirt concluded the ceremony.

"What government has to do is provide the opportunity for industry to grow and prosper," Tuck said. "In turn, industry will provide additional and better jobs for all of our citizens across our state. The Mississippi Legislature is proud to be a part of this great Northrop Grumman project. With the work that they have done before, and the great work they will accomplish with this modern and expanded facility, Northrop Grumman has proven to be one of Mississippi's most outstanding corporate citizens."

The extensive expansion and modernization project is intended to give Northrop Grumman Ship Systems the nation's most modern and safe work environment, keeping the company on the leading edge of competition.

"The investment made by the state of Mississippi and Northrop Grumman Corporation will keep this shipyard in Pascagoula vibrant, competitive and productive well into the 21st century," Dur said. "We are also adding opportunity in this investment. During the construction phase, there will be about 150 new jobs created and about $12 million in tax revenues generated for Mississippi. Once these programs ramp up, the state of Mississippi with benefit from about $282 million in tax revenues, and even more jobs will be added to support the workload."

The partnership between the state of Mississippi and Northrop Grumman combines private funding from the company with funds from the state through a series of bond issuances.

Northrop Grumman Ship Systems includes primary operations in Pascagoula and Gulfport, Miss., and in New Orleans and Tallulah, La., as well as in a network of fleet support offices in the U.S. and Japan. Ship Systems is one of the nation's leading full-service systems companies for the design, engineering, construction and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types.

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