State announces incentive package for Avondale

Gov. Bobby Jindal today announced an agreement with Huntington Ingalls Industries that the state hopes will help preserve Avondale Shipyard as one of Louisiana’s top employers. Under the memorandum of understanding, if Huntington Ingalls can find a partner to help keep the facility open, Louisiana Economic Development will support that joint effort with incentives for retooling and training worth about $214 million over 10 years. The incentives commitment is based on an assumption of approximately 3,850 full-time employees, and could change based on the final structure and focus of the potential joint venture, LED says. “Our goal is to find a strategic alternative with a credible partner that will result in a joint venture beneficial to all parties,” says Huntington Ingalls CEO Mike Petters. Last year, Northrop Grumman announced plans to consolidate its shipbuilding on the Gulf Coast and wind down construction at its Avondale facility in 2013. Subsequently, Northrop Grumman elected to spin off its shipbuilding business into HII, a new, independent public company. The MOU between LED and HII was executed in July.