[BITList] shipbuilding in question

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The Avondale shipyard is Louisiana's  largest manufacturing employer, but poor quality workmanship leaves future in doubt.

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Future of Avondale shipyard in question, top state official says
Published: Saturday, July 03, 2010, 7:04 PM     Updated: Saturday, July 03, 2010, 7:11 PM
 Robert Travis Scott, The Times-Picayune 
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After recent briefings with Northrop Grumman officials, Louisiana's economic development secretary said Friday he is concerned that the curtailment of U.S. Navy ship programs has put the future of the company's 5,000-employee Avondale shipyard in doubt.

Stephen Moret said the shipyard is at real risk of closure, which would have a "truly devastating impact" on the New Orleans regional economy.

The Avondale yard is the state's largest manufacturing employer.
A Northrop Grumman official reached Saturday deferred comments to a company spokeswoman in Washington, D.C., who did not respond.

U.S. Rep. Steve Scalise, R-Metairie, said he is among the members of the state's congressional delegation who spoke directly to Moret late last week. "There are clearly potential big problems," Scalise said. "I've got concerns about the jobs that would be at risk."

Stories in recent weeks in national defense media have reported that the Avondale yard is in danger of being sold or closed as the number of Navy ships in production declines.

The Avondale site on the west bank in Jefferson Parish is the smallest of Northrop Grumman's three major shipyards, which also include facilities in Pascagoula, Miss., and Newport News, Va.

The yard relies on production of the Navy's San Antonio LPD-17 class vessels, designed for amphibious warfare by delivering Marines to shore on landing craft and helicopters.

According to a Congressional Research Service report in March, the Navy's five-year shipbuilding plan calls for procuring an 11th and final San Antonio-class ship two years from now at an anticipated cost of more than $2 billion. "Navy plans do not call for procuring any LPD-17s beyond the 11th ship planned for FY 2012," the report said.

Congress is deciding whether to approve procurement of the 11th ship and any additional ships to bridge a gap in the military's ship acquisition strategy. The Navy plans to start acquiring a new class of amphibious ships in 2017, but at this point Northrop Grumman has no assurance of getting the work.

Moret said he has briefed Louisiana's senators and congressmen about the potential consequences. Among the lawmakers in influential positions, Sen. Mary Landrieu has a seat on the Senate Appropriations Committee.

Not only is the Avondale yard facing an overall downsizing of the Navy's fleet, but it also has to contend with questions that have been raised about its work quality.

The Avondale yard has suffered blows to its reputation due to repeated troubles with the San Antonio class ships, including cost overruns, construction delays, poor welding, leaks and computer design flaws. Malfunctioning engine and propulsion systems, which were not built by Northrop Grumman, have kept some San Antonio ships out of active deployment.

Hurricane Katrina stalled work on the ships and disrupted the work forces at Avondale and Pascagoula. The Navy Times has reported that welding problems on vessels built at the two sites became so severe that all pipe welders and Navy inspectors at the shipyards had to be recertified to work on ships.

The problems with the San Antonio class ships were the subject of a new report released by the Navy last week. It said that pervasive failures by the contractor, government and the ships' crews were at fault for engineering problems, shoddy workmanship and poor quality control.

The ships' highly automated control and monitoring systems were not operating as designed, the report said.




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