November 14, 2024
Business

Miss. shipyard luring Northrop suppliers

JACKSON, Miss. – Enthused by a proposal to set up shop in Mississippi, one of Northrop Grumman Ship System’s major suppliers is planning to send executives from Germany to visit the Pascagoula shipyard.

Phil Dur, Ship Systems president, met with Gov. Haley Barbour and other key state officials this past week for preliminary discussions that could bring several new businesses and 1,000 to 2,000 jobs to the Mississippi Gulf Coast and Pascagoula, in particular.

Dur wants seven suppliers to strike a deal with the state to secure funding to set up operations on 130 acres of unused property next to Northrop’s Pascagoula shipyard, the chief rival to Maine’s Bath Iron Works.

The suppliers include, General Electric Co., Rolls-Royce, Raytheon Co., United Defense, LP Parsons Corporation, MTU Detroit Diesel, L3 Westwood Corp. and representatives of The Staubach Co.

Representatives for MTU, which produces diesel engines, were among senior executives at the state Capitol meeting that introduced the suppliers to state officials.

Peter Grosch, MTU’s executive vice president, flew in from Germany for the meeting.

“It went very well. I’m absolutely delighted,” Grosh said after the meeting. “This is a great opportunity for us. I will be back in two weeks in Pascagoula to talk about more details of this big opportunity.”

Dur wants to cut costs by bringing Northrop’s suppliers closer to its shipyard. The move would increase Northrop’s profits and position the company to remain competitive despite cuts in Navy spending.

Dur hopes to get a proposal ready for the 2006 legislative session. He is considering a revenue bond package in which Northrop Grumman would lease the so-called east bank property to the suppliers and the income would repay the bonds. Dur said the financial proposal also is in the early stages.


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