Northrop Grumman chooses Virginia over Maryland

Defense contractor to move headquarters and 300 jobs to the state

By Andrea K. Walker, Jamie Smith Hopkins and Paul West,
The Baltimore Sun


In a closely watched, highly competitive deal to lure the headquarters of one of the country's largest defense contractors, Northrop Grumman is rejecting Maryland and putting its main office in Virginia, the company confirmed Monday night.

Gov. Robert F. McDonnell of Virginia is expected to announce today that the company will relocate its California headquarters and 300 employees to his state, economic development officials confirmed.

Gov. Martin O'Malley learned about the decision in a late afternoon call with Northrop chief executive Wesley G. Bush, said O'Malley spokesman Rick Abbruzzese. The head of the Los Angeles-based company said his choice of Virginia was a real estate decision, he said.

O'Malley congratulated Virginia in a statement and said the relocation was still a win for the entire region. The company already employees 40,000 in Maryland, Virginia and the District of Columbia.

"With today's announcement the region will not only gain new corporate-level jobs, but a number of the company's key subcontractors and suppliers," O'Malley said.

Northrop executives announced in February that the company planned to move its 300-person headquarters to the Washington region in 2011. It has since been heavily courted by all three jurisdictions.

The chance to lure the defense contractor was especially enticing to Maryland, which has lost several headquarters in recent years, most recently Black & Decker, which merged with Connecticut-based Stanley Works. Some had hoped a Maryland win would help reverse a perception that the state isn't business-friendly.

Virginia officials remained tight-lipped about the deal Monday. A spokesman with the Virginia governor's office would not comment when asked about the announcement. "We are still very much in the negotiation process with them," Christie Miller, a spokeswoman with the Virginia Economic Development Partnership.

Northrop Grumman released a statement Monday night about the move.

"Our final decision was driven largely by facility considerations, proximity to our customers, and overall economics," Bush said in the statement.

Northrup is in negotiations with building owners in the Falls Church/Arlington area, with a specific building to be announced soon, the statement said. The new office would open in 2011.

Karen M. Vasquez, public relations manager for Arlington Economic Development in Virginia, said her group was told the governor would make an announcement today, but said it would not comment until after the announcement.

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