Northrop, GD reach ship agreement

The New York Times is reporting that Northrop Grumman and General Dynamics agreed on Wednesday to a deal clearing the way for three DDG-1000 Zumwalt-class destroyers to be built at GD-owned Bath Iron Works in Maine. The newspaper cites Pentagon officials. Northrop, which planned to build one of the destroyers in Pascagoula, Miss., will contribute major components to the ships. In return, Northrop will restart production of DDG-51s, an older model destroyer, in Pascagoula. Secretary of Defense Robert Gates had said Monday that if the two companies could not reach an agreement, only one DDG-1000 stealth ship would be purchased by the Navy. (Source: New York Times, 04/08/09)