Boeing, Lockheed cleared to merge

Uniting of launch businesses could bring more jobs to area

Wednesday, October 04, 2006

By BRIAN LAWSON

Times Business Writer brian.lawson@htimes.com

Federal regulators cleared the way Tuesday for Boeing Co. and Lockheed Martin Corp. to merge their space launch business, creating the prospect for hundreds of new rocket manufacturing jobs in North Alabama.

Called the United Launch Alliance, the combined operation would perform most of its engineering work in Denver, while shifting Lockheed's Atlas V rocket manufacturing from Colorado to the Boeing rocket plant in Decatur.

The company would make the Atlas V and Boeing's Delta II and Delta IV rockets in Decatur, under the proposal which was first announced in May 2005.

"This is a big step, a big hurdle out of the way," said Boeing spokesman Dan Beck. "This is good for northern Alabama. It will become the rocket manufacturing center for two families of launch vehicles.''

The ULA will become the employer for the rocket manufacturing employees, but details of how that process will work have not been disclosed publicly.

U.S. Rep. Bud Cramer, D-Huntsville, has said the project could bring more than 200 jobs to the plant.

"Today's final approval of the ULA by the (Federal Trade Commission) is great news for North Alabama and reaffirms our area's commitment to developing our country's space launch business," Cramer said in a news release.

U.S. Sen. Richard Shelby, R-Tuscaloosa, said he, too, was pleased with the FTC approving the merger.

"The United Launch Alliance is great news for North Alabama and will potentially create hundreds of new jobs and increased economic opportunities for the region," he said in a statement.

Boeing and Lockheed officials did not provide an expected job figure Tuesday. Boeing employs about 660 people at the Decatur plant. Lockheed has about 1,000 employees engaged in engineering and manufacturing work on the Atlas V in Colorado.

The companies have said they expect to save between $100 million and $150 million annually through efficiency and elimination of "redundancies."

The FTC had been reviewing the deal for several months. Tuesday, the agency announced that the Department of Defense's view that the deal would enhance national security was the decisive factor in the commission's acceptance. The FTC said the ULA must give consideration to competitors in the future, essentially Northrop Grumman, in the satellite business.

There is no set date for when the ULA will formally take over the launch business, Boeing and Lockheed officials said. There are a number of issues to formalize, including operations, real estate, banking and employee benefits.

Tom Jurkowsky, a spokesman for Lockheed, said the review process was very complex, but Tuesday's consent order means the companies can move forward. He said there are more than 100 documents the two companies will have to sign to close the deal and the two sides are working to finalize those terms.

"We want to do this as soon as we can," Jurkowsky said.



Boeing, Lockheed cleared to merge Uniting of launch businesses could bring more jobs to area Wednesday, October 04, 2006 By BRIAN LAWSON Times Business Writer brian.lawson@htimes.com Federal regulators cleared the way Tuesday for Boeing Co. and Lockheed Martin Corp. to merge their space launch business, creating the prospect for hundreds of new rocket manufacturing jobs in North Alabama. Called the United Launch Alliance, the combined operation would perform most of its engineering work in Denver, while shifting Lockheed's Atlas V rocket manufacturing from Colorado to the Boeing rocket plant in Decatur. The company would make the Atlas V and Boeing's Delta II and Delta IV rockets in Decatur, under the proposal which was first announced in May 2005. "This is a big step, a big hurdle out of the way," said Boeing spokesman Dan Beck. "This is good for northern Alabama. It will become the rocket manufacturing center for two families of launch vehicles.'' The ULA will become the employer for the rocket manufacturing employees, but details of how that process will work have not been disclosed publicly. U.S. Rep. Bud Cramer, D-Huntsville, has said the project could bring more than 200 jobs to the plant. "Today's final approval of the ULA by the (Federal Trade Commission) is great news for North Alabama and reaffirms our area's commitment to developing our country's space launch business," Cramer said in a news release. U.S. Sen. Richard Shelby, R-Tuscaloosa, said he, too, was pleased with the FTC approving the merger. "The United Launch Alliance is great news for North Alabama and will potentially create hundreds of new jobs and increased economic opportunities for the region," he said in a statement. Boeing and Lockheed officials did not provide an expected job figure Tuesday. Boeing employs about 660 people at the Decatur plant. Lockheed has about 1,000 employees engaged in engineering and manufacturing work on the Atlas V in Colorado. The companies have said they expect to save between $100 million and $150 million annually through efficiency and elimination of "redundancies." The FTC had been reviewing the deal for several months. Tuesday, the agency announced that the Department of Defense's view that the deal would enhance national security was the decisive factor in the commission's acceptance. The FTC said the ULA must give consideration to competitors in the future, essentially Northrop Grumman, in the satellite business. There is no set date for when the ULA will formally take over the launch business, Boeing and Lockheed officials said. There are a number of issues to formalize, including operations, real estate, banking and employee benefits. Tom Jurkowsky, a spokesman for Lockheed, said the review process was very complex, but Tuesday's consent order means the companies can move forward. He said there are more than 100 documents the two companies will have to sign to close the deal and the two sides are working to finalize those terms. "We want to do this as soon as we can," Jurkowsky said. © 2006 The Huntsville Times © 2006 al.com All Rights Reserved.