Ohio company emerges as potential buyer for Northrop Grumman shipyard operationsBy AP
Monday, October 4, 2010
Potential Northrop Grumman shipyard buyer emerges
NEWPORT NEWS, Va. — A small Ohio-based shipbuilding company says it has made an offer to buy defense contractor Northrop Grumman Corp.’s shipbuilding unit.
Cleveland Ship LLC said in a 21-page news release Sunday that it submitted a bid in late September for Northrop Grumman’s shipbuilding operations. That includes one shipyard in Newport News that employs about 20,000 workers, along with two other major shipyards in Mississippi and Louisiana.
Cleveland Ship, which is run by a small group of engineers and financiers, did not disclose the value of the offer. Cleveland Ship said it intends to own the business long term and said its offer “fully satisfies” Northrop Grumman’s objectives and holds “superior value” for the company and its shareholders.
Northrop Grumman told The Associated Press that it does not comment on such matters, but the nation’s largest shipbuilder said in July that it is studying “strategic alternatives” for its shipbuilding division.
Northrop Grumman is one of the Navy’s main sources of nuclear powered submarines, aircraft carriers and other warships. In 2009, shipbuilding accounted for $6.2 billion of its $33 billion in total revenue.
Tags: Newport News, North America, Ohio, Ownership Changes, United States, Virginia