Defense contractor Northrop Grumman said Monday it would relocate its corporate headquarters to the Washington area, setting up intense competition among local governments to secure the aerospace giant. The company, now based in Los Angeles, said it would pick a home for its new offices by spring and complete the move by summer 2011.
Northrop Grumman plans to house 300 employees in the new headquarters, adding to its more than 20,000 employees already in Washington, Northern Virginia and Maryland. Locally, it has division headquarters in Reston, Herndon, Linthicum and an Arlington skyscraper overlooking the Potomac River and the monuments.
“As a global security company with a large customer base in the Washington, D.C., region, this move will enable us to better serve our nation and customers,” said Northrop President and Chief Executive Officer Wes Bush. Economic development officials in the region are expected to heavily court the contractor, touting their high quality of life and proximity to the federal government while offering packages of lucrative incentives.
“We’ve got excellent schools, highly educated work force and economic incentives,” said Steve Silverman, director of the Montgomery County Department of Economic Development. “We can be as competitive as any other jurisdiction in the Washington area. The first thing we’re trying to determine is what they’re actually looking for.” Fairfax County economic development officials, citing county policy, declined to comment.
Virginia Gov. Tim Kaine called the announcement “great news for the region.” Northrop Grumman is already Virginia’s largest private employer. Northrop Grumman would join other defense contractors anchoring themselves in the Washington region, including competitors Lockheed Martin, based in Bethesda, and General Dynamics, based in Falls Church. Northrop said about 30,000 employees would remain in California to perform research, development and manufacturing.
The company’s aerospace systems sector is based in Redondo Beach, Calif. Jack Northrop founded Northrop Aircraft Inc. in California in 1939. The company built jet fighters for the United States and other militaries, then expanded to make guided missiles, the B-2 stealth bomber and other defense systems. Northrop also provides electronics, shipbuilding and technical services to government customers and other companies. Northrop acquired Grumman Corp., another military aircraft maker, in 1994.
The Associated Press contributed to this report
