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As war looms,
defense work and mergers keep on coming
Virginia’s No. 2 position — behind California
— as a defense industry state is solidifying. Contracts
and mergers keep boosting the industry just as Virginia-based
Navy ships and Air Force fighter squadrons, soldiers
and Marines deploy for possible combat against Iraqi
dictator Saddam Hussein.
The
biggest recent deal, a cash transaction worth $1.1 billion,
is a plan by Falls Church-based General Dynamics Corp.
to buy the armored vehicle unit of General Motor Corp.
If the deal goes forward, General Dynamics would become
the leading maker of wheeled armored vehicles that are
faster and more maneuverable than traditional tracked
tanks.
General
Dynamics already makes the lightly armored Stryker combat
vehicle, but the new deal would position the firm to
bid on future versions. General Dynamics also may build
up to 1,000 new amphibious assault vehicles for the
Marine Corps at a facility near Woodbridge.
Meanwhile,
Northrop Grumman, which bought Newport News Shipbuilding
last year, is expanding further. Its takeover of TRW
Corp. has been approved, and Los Angeles-based Northrop
Grumman is selling TRW’s auto parts business and
keeping its defense units. Some are in Virginia, notably
the former BDM International of Fairfax, which produces
computer systems for warfare and surveillance.
A
slew of other new contracts grow unabated. Beneficiaries
are such high-tech defense companies as Anteon International
Corp. of Fairfax, CACI International of Arlington and
DynCorp of Reston. And, as expected, the newly created
Department of Homeland Security is likely to be headquartered
in Northern Virginia.
Virginia
Business - February 2003
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