Northrop Grumman Realigns its Shipbuilding, Missiles Operations

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Northrop Grumman Corporation announced a strategic realignment of several of its operating sectors in an effort to improve customer support and utilization of resources. Under this realignment the company created a single shipbuilding sector called Northrop Grumman Shipbuilding which will merge its Newport News and Ship Systems operations creating a single management for the company’s annual turnover of approximately $5.5 billion in revenues from military shipbuilding and support. 

The realignment and transition process for the new Shipbuilding sector is expected to continue throughout 2008. C. Michael Petters, currently corporate vice president and president of Newport News, has been elected corporate vice president and president of the new division. Petters will assume day-to-day responsibility for the Gulf Coast operations of Shipbuilding and will operate from Pascagoula, Miss., during this transition phase. The new operation will manage about 40,000 employees in four principal shipbuilding operations located in Virginia, Mississippi, Louisiana and California. The company does not anticipate any facility closures or significant reductions in yard employment levels as a result of this realignment.

In addition, Missiles business will now report to the Space Technology sector, effective July 1, 2008. This change will enable Mission Systems, currently responsible for the missiles business, to focus on the rapidly growing C4ISR business, while enabling the missiles business will be an integrated element of the company’s Aerospace business growth strategy. The $900 million missiles business employs approximately 750 people and has operations in Utah, Alabama., Virginia and California. Northrop Grumman’s missiles business includes the ICBM Prime Integration program, the Kinetic Energy Interceptor program and the Missile Engineering Center, will be led by John Clay, vice president and general manager, reporting to Alexis Livanos, corporate vice president and president of Space Technology.