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With demand from the Navy for military ships declining, Northrop Grumman Corp. said Tuesday it was closing its Avondale, La., shipyard and may get out of the shipbuilding business altogether.

The site near New Orleans employs about 5,000 people. Operations there will be consolidated with the company's Pascagoula, Miss., shipyard about 125 miles away, Northrop said.

Century City-based Northrop builds transport and amphibious assault ships at both locations. Consolidating ship construction on the Gulf Coast will reduce costs and increase efficiency, Wesley G. Bush, Northrop's chief executive, said in a statement.

The Avondale shipyard, which is currently building two transport ships, will cease production by 2013. In February, the Navy canceled the planned purchase of two amphibious ships that were to be built at the yard. 



PS    Avondale is on the outskirts of new orleans


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