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New Orleans and Hurricane Katrina
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Aerial imagery of the Avondale Shipyard New Orleans 2005 Hurricane Katrina.
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Avondale Shipyard :: http://www.smartmoney.com/news/on/index.cfm?story=ON-20050906-000736-1816
Northrop Executive:Avondale Shipyard May Resume Work This Week
By Rebecca Christie
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Northrop Grumman Corp. (NOC) will soon resume shipbuilding at its New Orleans shipyard despite the regional devastation of Hurricane Katrina, Philip Teel, president of Northrop Grumman Ship Systems, said Tuesday.
The company's Avondale shipyard in Louisiana is almost ready to restart work, Teel said in a telephone interview with Dow Jones Newswires. The biggest remaining problem is that New Orleans travel restrictions have prevented workers from getting to the shipyard.
"Our facility in Avondale should be ready to go, really by tomorrow in our belief," Teel said.
The company's two other Gulf Coast yards also are recovering. The yard in Gulfport, Miss., may take several weeks to come back online, but work could resume at Ingalls in Pascagoula, Miss., next week.
"We're hoping to be able to start work on ships by next Monday," Teel said.
Northrop Grumman has not yet estimated the financial effect of the storm and its aftermath. Teel said the company hopes to have an estimate of that impact in about a week.
Between 3,500 and 4,000 workers already are back on the job at the three Gulf Coast shipyards, Teel said. But the company has still not made contact with all of its 20,000 workers, nor are there any estimates of whether any employees were killed or seriously injured by the storm.
"It's premature to talk casualty counts. We seem to have been incredibly lucky," Teel said.
No workers were hurt while on duty during the hurricane, a company spokesman said. About 120 people stood watch in Pascagoula throughout the storm.
Ships under construction also weathered the storm well, Teel said. Only one ship under construction, the destroyer known as DDG-100, was damaged, and it will not be difficult to repair, he said.
The Pascagoula shipyard has two destroyers and two amphibious ships in the water, with another three ship under construction on dry land. In New Orleans, the company is building another three amphibious ships as well as a commercial tanker for ConocoPhillips (COP).
In Gulfport, Northrop Grumman is building tower structures for the LPD amphibious ships. Towers under construction were not damaged by the storm, company spokesman Brian Cullin said.
Even though shipbuilding has been on hold while the facilities are repaired, workers are getting paid. Northrop Grumman is giving two weeks of full pay to all its Gulf Coast employees, and the firm has made arrangements with local banks and Western Union money transfer offices to make sure workers can get to their paychecks.
Northrop Grumman has set up a toll-free number for workers who have been out of communication. That check-in number is 1-877-744-7642.
- By Rebecca Christie; Dow Jones Newswires; 202 862 9243;
rebecca.christie@dowjones.com
(END) Dow Jones Newswires
09-06-05 1835ET
Copyright (c) 2005 Dow Jones & Company, Inc.
http://www.smartmoney.com/news/on/index.cfm?story=ON-20050906-000736-1816
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