Northrop Grumman [NOC] this week said it will combine its two shipbuilding sectors, Newport News and Ship Systems, into a single operating sector effective Jan. 28.
In addition, the company said it will separate its missiles business from its Mission Systems sector and realign it with its Space Technology sector beginning July 1. Mission Systems is focusing on growth in the C4ISR market and the missiles business will be part of Northrop Grumman’s growth plans for the aerospace market.
The organizational changes are designed to improve customer support and drive operating improvements, Northrop Grumman said.
The new Northrop Grumman Shipbuilding sector will be led by Michael Petters, who currently leads Newport News. Philip Teel, who heads Ship Systems, will take over at Mission Systems for the retiring Jerry Agee.
“This strategic realignment will enhance our world-class military shipbuilding enterprise and provide an integrated interface and full range of capabilities to our customers,” Ronald Sugar, Northrop Grumman’s chairman and CEO, said in a statement. “It will enable the company to more effectively utilize our shipbuilding assets and deploy its talented shipbuilders, processes, technologies, production facilities and planned capital investments to meet its customers’ needs.”
Newport News is responsible for aircraft carrier construction and upgrades while Ship Systems builds and upgrades Naval vessels such as destroyers, amphibious assault ships and Coast Guard ships.