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Litton May Build 1st Submarine in 30 Years

October 26, 2000|Bloomberg News

Litton Industries Inc., the U.S. Navy's third-largest shipbuilder, may build its first submarine in nearly 30 years if it wins an order from Egypt for two of the diesel-powered vessels. The value of the contract to Woodland Hills-based Litton and its partners, RDM Technology of the Netherlands and Lockheed Martin Corp., could be more than $500 million, analysts said. Litton said details are being negotiated. The parties expect to reach an agreement early next year and the submarines would be delivered five to seven years after a contract is signed, Jane's Defence Weekly, a British defense-industry trade magazine, reported last week. Litton said it couldn't comment on specifics. Litton stopped making submarines in 1974 because "there was competition growing on the horizon that required a significant capital investment," said company spokesman Randy Belote. It now makes surface ships such as destroyers at its Ingalls shipyard in Mississippi. Litton shares fell 69 cents to close at $51.31 on the New York Stock Exchange.

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