Government checks off on Navy warships

MARINETTE - The federal government has signed off on building more Navy ships at Marinette Marine.

The Department of Defense awarded nearly $700 million to defense company Lockheed Martin Monday evening for two more Littoral Combat Ships, LCS 13 and LCS 15.

Those two ships will be number five and six of a 10-ship multi-billion dollar contract originally awarded in 2010. The Navy will announce the names of the ships at a future date.

And the announcement of the funding is a bit of a relief for some, like first year mayor Denise Ruleau. She says the DOD's announcement only helps the rest of the city.

"There's plenty of jobs,” said Ruleau of the availability of jobs in the city. “Lots of our large employers are hiring and expanding. We have a good problem.”

LCS 13 and 15 will be tacked on to the three ships already being built: the Milwaukee (LCS 5), Detroit (LCS 7), and Little Rock (LCS 9); another, the Sioux City (LCS 11), the company is buying parts to start construction.

Though the new ships won't create any new jobs, Marinette Marine says the work will be welcome.

"We look forward to the backlog this is going to create for the shipyard,” said Marinette Marine President and CEO Chuck Goddard. “This will keep us busy through 2016 and sustain employment at about 1,400 people that we currently have."

Goddard says there was some uncertainty of the funding, as Washington dealt with budget cuts and the $85 billion sequestration. Goddard says the funding is a vote of confidence.

"Now it's up to us to perform,” said Goddard. “The Navy can always decide to stop work and terminate. That's a choice that they have. But as long as you continue to perform, we'll have these ships for the three years it takes us to get them through to delivery."

The funding will also keep the company's training center partnership with Northeast Wisconsin Technical College busy.

Over the past year and a half, NWTC has been working with current Marinette employees and contractors, as well as providing resources – like industry-specific software and technology – for students looking to get into ship building.

"And when you look at all the ship builders within the region and how we're positioned with the training center, we're providing support to that entire industry," said Dean Stewart, Dean of NWTC’s Corporate Training and Economic Development.

Goddard expects it will take about one year to get the needed materials for the two newest ships.