Northrop Grumman Picks Virginia for Headquarters

Share

Northrop Grumman Inc. is moving its headquarters to the Virginia suburbs of Washington, close to its main customer.

Virginia beat out Maryland and the District of Columbia to host the defense giant. Gov. Bob McDonnell confirmed the news last night and said in a statement that the move will create 300 jobs in Virginia.

"To gain the corporate headquarters of one of the largest global security contractors in the world is a testament to the strong business climate that we are focused on continually improving," McDonnell said.

Northrop Grumman's chief executive officer, Wesley G. Bush, telephoned U.S. Sen. Mark R. Warner, D-Va., late yesterday afternoon to inform the former governor of the company's decision to move to Virginia.

In the statement issued by McDonnell's office, the Northrop Grumman CEO said: "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."

Northrop Grumman said it is negotiating with several building owners in the area of Falls Church and Arlington County. The company said it expects to announce the site for its headquarters soon.

McDonnell will attend a media event today at 2 p.m. at Northrop Grumman's Rosslyn offices in Arlington County.

Northrop Grumman said at the start of the year that it wanted to move to the Washington area from its longtime Southern California home.

Its announcement set off a stiff competition among the two states and the District of Columbia, including to provide tax credits and other financial sweeteners, as developers scrambled to offer the kind of prestige property that a $34-billion-a-year company might want.

What the state put on the table has not been made public.

The financially pressed D.C. Council, though, balked at paying for a $25 million package of incentives.

More than 90 percent of the company's revenue comes from the U.S. government, and much of that is with the Pentagon in Arlington, according to the company's financial filings with the U.S. Securities and Exchange Commission.

Northrop Grumman employs about 31,000 people in more than 20 locations in Virginia.

It is the state government's biggest contractor. The state recently settled an acrimonious controversy over missed deadlines on a $236 million-a-year IT-services contract by extending the contract three years to 2019 and agreeing to additional payments totaling $105 million.

"Northrop Grumman's decision today is a win for the entire greater Washington region, and I want to congratulate the state of Virginia," Maryland Gov. Martin O'Malley said.

"With today's announcement, the region will not only gain new corporate-level jobs but a number of the company's key subcontractors and suppliers."

State Sen. Mary Margaret Whipple, D-Arlington, said: "I'm very pleased that they made this decision to come to Virginia."

The announcement of a new corporate headquarters comes ahead of a webcast and conference call tomorrow to disclose the company's performance in the first quarter of 2010.

SOURCE: Richmond Times Dispatch