Alabama's port city lands $40 B contract for Northrup/EADS

The selection of a Mobile site for a multibillion-dollar Air Force contract gave Alabama's port city its second major industrial victory in less than a year.

The Air Force announced Friday it had picked Northrop Grumman and its Paris-based partner, European Aeronautic Defence and Space Co., to build 179 refueling tankers at Mobile, creating an estimated 2,000 jobs and putting the city on the aeronautics industry's world map.

The contract is worth $30 billion to $40 billion over 10 to 15 years and could be even more lucrative _ it is the first of three deals to replace the Air Force's entire fleet of nearly 600 tankers.

Last May, German steelmaker ThyssenKrupp picked a site near Mobile for a steel plant expected to create some 2,700 jobs when fully operational, another coup for the city on Mobile Bay.

"ThyssenKrupp and now EADS/Northrop Grumman! Mobile County is entering a new era of economic prosperity," said Mobile County Commissioner Merceria Ludgood.

A project of this magnitude "is a change-agent for Mobile," Mobile Area Chamber of Commerce President Win Hallett said. "We are now well-positioned to lead the United States' aerospace industry, and look forward to the partnership's successful integration into the Mobile market."

Supporters of the Northrop/EADS plan said it could move Mobile into the same league with Seattle, where Boeing builds large aircraft, and Toulouse, France, where EADS makes the Airbus.

"To say this is a great day for Alabama is a monumental understatement," said Gov. Bob Riley.

"The Northrop Grumman/EADS project will expand the aerospace industry in Mobile, as well as provide a tremendous amount of opportunities for additional aircraft manufacturing suppliers, and good paying jobs for the people of our region," Mobile Mayor Sam Jones said at a news conference that turned into a champagne-pouring celebration. "This a community-changing industry."

The announcement surprised even the state's congressional delegation, which has lobbied on Mobile's behalf for months but knew the Northrop team was widely considered the underdog in the competition.

Sen. Richard Shelby, R-Tuscaloosa, called it "stunning news."

"Alabama's on a roll," he said. "Our economy is good."

Shelby said the Northrup/EADS plane appeared to be the better option all along. "It is larger. It's more modern. It'll carry more, and in the long run, it'll save us money."

Sen. Jeff Sessions, R-Mobile, said the contract award is "fabulous news."

"We're talking about billions of dollars over decades of work," Sessions told a crowded room of local officials in a telephone call. "I know there will be a lot of challenges as we move forward from here."

Mobile has long had a thriving port and industrial sector. Then last May ThyssenKrupp picked a site near Calvert north of Mobile for a steel plant that had been widely courted by other states.

For more than two years, local and state officials supported the refueling tanker proposal by the partnership of Northrop Grumman/EADS. The industry recruiters pointed to the city's closeness to the Gulf of Mexico shipping lanes and its available airport space, highways and railroads.

The state's congressional delegation also endorsed Northrop's proposal in a competitive war with Boeing's plans to build the tankers in Washington state.

U.S. Rep. Jo Bonner, R-Mobile, said the work force of south Alabama is up to the challenge of building the tankers.

"And I commend the Air Force for seeing beyond all of the rhetoric and for placing its confidence in us. Neither the Air Force nor the warfighter will be disappointed," Bonner said.

In a statement, EADS North America Chairman and CEO Ralph D. Crosby Jr. said his firm "has committed our full resources to support this vital program for our prime contractor, Northrop Grumman, the U.S. Air Force and the warfighters that this system will serve for decades to come.

"We already have begun the work necessary to expand our U.S. industrial footprint in support of this important program."

In June 2005, Riley joined EADS North America executives to announce the firm's plans for an engineering facility at Brookley Industrial Complex, the city's largest manufacturing employer, in anticipation of assembling its refueling aircraft here.

The engineering facility, which opened in January 2007, is involved in the company's Airbus engineering plans and will continue to operate.