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Litton Industries' acquisition of Avondale Industries has been completed, and the company has placed its two shipyards under the newly formed Litton Ship Systems Group headed by former Ingalls Shipyard president Gerald J. St. Pé. Litton also has announced abandonment of its effort to acquire Newport News Shipbuilding.

Litton acquired Avondale for $529 million. With a combined workforce of 17,000 workers, Avondale and Ingalls Shipbuilding expect to earn combined revenues of $1.8 billion annually, company officials said, and will be able to build any type of nonnuclear-powered ship.

"We are delighted to welcome Avondale and its employees to Litton," said Michael R. Brown, chairman, president, and CEO of Litton. "The merger with Avondale significantly broadens Litton's market coverage in both military surface combatants and commercial ships."

St. Pé, formerly senior vice president of Litton and CEO of Ingalls--a company he joined in 1961--also serves as chairman of the American Shipbuilding Association. "Jerry St. Pé is a recognized and well-respected leader in the shipbuilding industry, and the obvious choice to lead Litton's expanding shipbuilding business," said Brown. "St. Pé has solidified our shipbuilding division's position as the nation's most efficient and profitable shipbuilding operation."

"I look forward to working with Al Bossier, president of Avondale, and the entire Avondale team, in achieving the goals and visions of the new Litton Ship Systems organization," said St. Pé. "Ingalls and Avondale, and other future elements of Litton Ship Systems, will truly create a world-class team."

Litton withdrew its $1.8 billion proposal to acquire Newport News Shipbuilding because of Defense Department concerns that the acquisition would limit competition. Litton's purchase of Avondale leaves control of the nation's six largest shipyards under three companies: Litton (Ingalls and Avondale); General Dynamics (Electric Boat, NASSCO, and Bath Iron Works); and Newport News Shipbuilding.

U.S. Marine Repair Unveils Revamped NORSHIPCO

The nation's largest nonnuclear ship repair, modernization, and conversion company has celebrated the revitalization and renovation of one of its five shipyards, Norfolk Shipbuilding and Drydock Company (NORSHIPCO, headquartered in Norfolk, Va.).

U.S. Marine Repair (USMR), which acquired NORSHIPCO in 1998, made sweeping changes to the shipyard in response to employee requests and launched an aggressive effort in interior and exterior renovations of administrative and shop facilities, parking lots, and landscaping. The improvements, and separate efforts to improve safety, were highlighted in a ceremony attended by Sen. Charles Robb (D-Va.), Virginia Lt. Gov. John Hager, Rep. Norm Sisisky (D-Va.), and Rep. Owen Pickett (D-Va.)

"We are truly revolutionizing the way ship repair is performed in this country," said B. Edward Ewing, USMR CEO. "Our objective is to lead the industry and be the best in every aspect of our business. For us, that starts with our employees. ... Our philosophy is that management is here to serve our employees."

"We also want our customers to say that we are the best," added Alexander J. Krekich, USMR's chief operating officer and president of NORSHIPCO.

Note: In another development, NORSHIPCO has been awarded a $21 million contract to overhaul the Ticonderoga-class Aegis guided-missile cruiser USS Philippine Sea.

Defense Industry Notes

Bell Helicopter Textron has announced that the company has acquired Edwards and Associates of Bristol, Tenn., a company that specializes in the sale and assembly of helicopter customization kits. Bell also has purchased property on Alliance Airport in Fort Worth, Texas, to serve as headquarters for the Bell/Agusta Helicopter Company, a joint venture that will manufacture BA609 tiltrotor aircraft. The Alliance property will serve as a BA609 training and delivery center.

Newport News Shipbuilding has been awarded a $24 million contract to overhaul the Ticonderoga-class Aegis guided-missile cruiser USS Gettysburg. Improvements planned for the ship include upgrades to the ship's Aegis combat system; the conversion of hot water, galley, and laundry services from steam power to electric power; blasting and painting of the ship; and berthing modifications to permit women to be assigned to the ship.

Aerospace Aircraft Integrated Systems, a BFGoodrich company, is working with the Navy to test a system designed to reduce helicopter operation and support costs and enhance safety. The company will retrofit several CH-53 and SH-60 helicopters with the Integrated Mechanical Diagnostics Health and Usage Monitoring System, which will monitor engine and rotor performance to predict component failure and enable maintenance personnel to replace components before breakdown.

Continental Electronics Corporation has been awarded a $34 million Space and Naval Warfare Systems Command contract to upgrade the Navy's very-low frequency network used for communicating with submarines. The Naval Radio Station Jim Creek in Arlington, Wash., will be the first site to be upgraded with the new hardware and software modifications.

Raytheon Aerospace Company has been awarded a $26 million Navy contract to provide total maintenance support for the Navy's 117 TH-57B/C Jet Ranger training helicopters at naval air stations in Milton, Fla., and Patuxent River, Md. 

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