State and company execute agreement focused on developing a new joint venture at Avondale
Office of the Governor, Bobby Jindal - October 18, 2011
WESTWEGO – Today, Gov. Bobby Jindal joined Huntington Ingalls Industries (NYSE: HII) President and CEO Mike Petters to announce that the State and Huntington Ingalls Industries (HII) have entered into a Memorandum of Understanding (MOU) under which an Avondale joint venture would receive incentives for retooling and training at Avondale if this new joint venture preserves Avondale as one of Louisiana’s top employers with approximately 3,850 jobs.
Governor Jindal said, “Northrop Grumman’s decision to end shipbuilding at Avondale by 2013 – as a result of the Navy’s procurement changes – was a blow to the thousands of people who work at Avondale and to the communities that support the shipyard. We knew there were multiple communities and thousands of jobs at risk – and that’s why we committed last year to do everything we could to secure the future of Avondale and its workforce. We refused to accept a future in Louisiana without an Avondale. We refused to think of a future in the New Orleans area that does not include Avondale and all the shipbuilding tradition and economic activity it has spurred in this region for more than seven decades now. We refused to give up on Avondale.
“We made a commitment that we would exhaust every possible avenue before us to save the jobs in this area. We immediately began reaching out to other potential shipbuilders for the site, and worked with Northrop Grumman and later Huntington Ingalls to discuss options for keeping Avondale open. This agreement with HII means we are one step closer to securing the future of Avondale and its incredible workforce. We still have work to do, but we’re moving in the right direction. For generations, folks at Avondale have worked to build the ships that protect our country and keep our soldiers safe – and we will not rest until every option is exhausted to keep jobs in Louisiana.”
The MOU between Louisiana Economic Development and HII details a commitment of performance-based incentives totaling approximately $214 million over 10 years, including job-creation credits, funding toward retooling and modernization of Avondale and a comprehensive, customized workforce training solution to be delivered by Louisiana FastStart. The incentives commitment is based on an assumption of approximately 3,850 full-time joint venture employees. Employment and incentive levels could change proportionately based on the final structure and focus of the potential joint venture.
To view the full document at the source publication, go to http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&articleID=3058.
The information above is for general awareness only and does not necessarily reflect the views of the Office of Economic Adjustment or the Department of Defense as a whole.