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January 15, 2009

Report: Shipbuilders consider swap

By The Mainebiz News Staff

Negotiations are under way that could result in Bath Iron Works contracting to build more of the Navy's next generation of destroyers, according to Defense News.

The defense industry newspaper cites unnamed sources that said the U.S. Navy, General Dynamics and Northrop Grumman are discussing the possibility of swapping shipbuilding contracts. Currently, General Dynamics' BIW and Northrop Grumman's Ingalls shipyard in Pascagoula, Miss., are scheduled to build the first and second DDG 1000, respectively. According to Defense News, however, a plan being discussed would give BIW the second DDG 1000 ship, which Northrop Grumman was scheduled to begin building this fall, and in return give Northrop Grumman more work on upcoming DDG 51 class destroyers the Navy expects to buy. BIW spokesman Jim DeMartini had no comment for Mainebiz this morning. "That's a speculation of the highest order and we really don't have any comment on that."

Still uncertain is who will build the third DDG 1000. Each DDG 1000 is expected to cost between $3 billion and $5 billion. Congress has already approved funding for the first two DDG 1000s, while half the funds for the third ship were authorized in the 2009 budget and the other half expected to be included in the upcoming 2010 budget request, Defense News reported.

 

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