Defence

Northrop Grumman is creating a logistics support and technical services unit in a move that reflects the growing trend for aerospace and defence companies to seek a tighter grip on the rapidly expanding product support market, writes Aimée Turner.

The unit, Northrop Grumman Technical Services, will be initially based in Washington DC, and will consolidate support work performed at four Northrop main business units: electronic systems, integrated systems, mission systems and information technology.

“It would be our intention to leverage existing business strengths and synergies in the rapidly expanding logistics support, sustainment and technical services market,” says Northrop. Other business sectors could contribute in the future, it adds.

The combined value of the services business, which will include aircraft maintenance, repair and overhaul in addition to engineering work on various established programmes, is not being disclosed, although Northrop says the new unit will consolidate logistic activities employing 10,000 people within the four business sectors.

“With the continued expansion of this important market, it is the right time for Northrop Grumman to capitalise on our embedded capabilities,” says Ronald Sugar, chairman and chief executive.

James Cameron, former vice-president and general manager of Northrop’s defensive and navigation systems division, will head the new unit. “Northrop Grumman’s realignment and intensified focus on this critical part of our customers’ business will strengthen our ability to meet their needs,” he says. “The formation of the technical services sector enables Northrop Grumman to deliver more integrated product and life-cycle solutions.”