The Washington Post today reports on a speech by Wes Bush, chief executive and president of Northrop Grumman, commenting on the top issues facing defense contractors and the federal government. Export controls figured prominently in his remarks, as modernization of the rules are of key importance to U.S.-based manufacturers competing in the global marketplace.

From “Northrop CEO says export controls should be eased“:

The government needs to launch new programs and ease export controls to ensure defense contractors remain capable and viable, said Wes Bush, chief executive and president of Northrop Grumman, in a speech to the region’s technology community last week.
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News release, “Northrop Grumman Selects Virginia for New Corporate Office“:

LOS ANGELES – April 26, 2010 – Northrop Grumman Corporation (NYSE:NOC), announced that it will locate its new corporate office in Virginia, concluding a search that also included the state of Maryland and the District of Columbia.

“We are pleased to have identified Virginia as the home for our new corporate office. Virginia, Maryland and the District put forward compelling, competitive offers. Our final decision was driven largely by facility considerations, proximity to our customers, and overall economics,” said Wes Bush, chief executive officer and president. “We are very appreciative for the tremendous assistance we received from Governor O’Malley and the State of Maryland, Mayor Fenty and the District of Columbia, and Governor McDonnell and the Commonwealth of Virginia as well many local counties and municipalities.”

Northrop Grumman is currently conducting negotiations with several building owners in the Falls Church/Arlington area, with a specific building selection to be announced soon. The company expects to initiate operations in the new corporate office in summer of 2011 with approximately 300 people.

At the risk of being redundant, welcome to the area! As the next line of the news release notes, “Northrop Grumman currently employs approximately 40,000 people in Maryland, Virginia and Washington, D.C. and is the largest industrial employer in both states.”

News coverage tended to highlight Virginia Gov. Bob McDonnell’s role in the recruitment of the corporate headquarters, as well as the incentive packages offered by the states. Congratulations to the governor, too, but the comparatively friendly business and investment environments in Virginia versus Maryland or the District probably played a more important role. In CNBC’s “Top States for Business 2009,” Virginia ranked No. 1. Maryland ranked 27.

• Washington Post, Northrop Grumman picks Virginia for corporate headquarters“
• Washington Examiner, “Va. ponies up millions to add Northrop”“
• News Channel 8, Virginia Woos Northrop Grumman, Winning Hard-fought Battle”

Big week for Northrop Grumman. Today the company announced first quarter earnings, which increased to $462 million, or $1.51 per diluted share, from $366 million, or $1.10 per diluted share, in the first quarter of 2009.

And then there’s this news, good for the national defense, “Northrop Grumman Delivers Mine Detection Pods Ahead of Schedule.” Photo here.

From VirginiaBusiness.com, reporting on yesterday’s big event for Virginia, manufacturing, and the future of the nuclear energy industry in the United States, “Areva, Northrop Grumman break ground on $363 million nuclear component plant“:

Calling it a significant step for the resurgence of nuclear power in the U.S, the CEO and chairman of France-based Areva NC joined 200 business and government leaders in Newport News this evening to break ground on the building of the first new nuclear component plant in the U.S. in 35 years.

Wearing a beige suit, Anne Lauvergeon stood out from the group of men wielding the silver shovels. “We intend to build a lot of new reactors in the U. S. We believe in the North American markets and the workforce,” she said. The more than 500 skilled manufacturing jobs that will eventually be created by the plant will go to American workers and not overseas, she said to applause.

Areva is partnering with Northrop Grumman to build a $363 million, 330,000-square-foot plant on land adjacent to the shipyard. Lauvergeon said in an interview with Virginia Business that the expertise of shipyard workers in building nuclear ships and the proximity to the Port of Virginia—where the heavy components can be shipped overseas—were key reasons why Areva chose Newport News for the project.

Note the infrastructure and trade angle. More from WAVY-TV, with good information about the workforce angle:

Skilled craft workers from Northrop’s Shipbuilding sector will help build steam generators and reactor vessels, and they have plenty of experience from more than a half century of building nuclear vessels for the Navy.

“Here at the shipyard our talented shipbuilders can build anything,” beamed Mike Petters, President of Northrup Grumman Shipbuilding.

Congratulations!

Exciting news from Virginia on Thursday, a major and necessary development for the U.S. nuclear renaissance to grow and take hold. From Areva and Northrop Grumman:

AREVA, Northrop Grumman join forces to create world-class facility in U.S. to manufacture heavy components for american nuclear energy industry

AREVA and Northrop Grumman Shipbuilding, a sector of Northrop Grumman Corporation (NYSE: NOC), have joined forces to build a new manufacturing and engineering facility in Newport News, Va., to supply the growing American nuclear energy sector. The joint venture, AREVA Newport News, LLC, with AREVA will hold 67% and Northrop Grumman 33%, will establish a world-class facility to manufacture heavy components for the U.S. EPR, AREVA’s Generation III+ nuclear reactor.

The 300,000 square-foot facility represents a significant investment of more than $360 million in the U.S. commercial nuclear and manufacturing industries and will bring more than 500 skilled hourly and salaried jobs to the Commonwealth of Virginia. AREVA Newport News will be the first full-scale manufacturing facility dedicated to supply heavy components, such as reactor vessels, steam generators and pressurizers to the U.S. nuclear energy industry. These components will supply the first new U.S. nuclear power plants to be built in 35 years. Industry experts have viewed limited production of heavy components positioned against rising demand as a constraint on nuclear energy’s expansion. 

It’s been nearly three decades since the last new nuclear power plant was built in the United States, and the inaction since then has led to a deterioration of the engineering knowledge, manufacturing base and skilled personnel needed for a vibrant nuclear power industry. Areva and Northrop Grumman’s announcement represents a big step toward their revival. Congratulations to all involved.

More…

• Wall Street Journal, “Areva Will Build Reactors in U.S.“
• Virginia Gov. Tim Kaine news release, “Governor Kaine Announces 540 New Jobs for Newport News“
• Newport News Daily Press, “540 jobs, $363 million in nuclear reactor deal“