MINNEAPOLIS (AP) — Defense contractor Lockheed Martin Corp. said on Thursday that it will close its Eagan, Minn. plant by 2013, eliminating or moving about 1,000 jobs.
The company makes components for the Navy's P-3 Orion anti-submarine plane at the plant.
Lockheed said 650 of the Minnesota jobs would move to Owego, N.Y., San Diego, and Manassas, Va. Layoffs and transfers will begin in the first three months of next year.
The Defense Department has been on a cost-cutting drive, and that has been hurting defense contractors like Lockheed. Many have been announcing layoffs or other belt-tightening measures.
The cost-cutting means "it is essential we drive down costs and optimize capacity at our facilities nationwide," said Orlando P. Carvalho, president of Lockheed's Mission Systems and Sensors unit.
Lockheed is also moving most of its ground-vehicles business to Dallas, including the Joint Light Tactical Vehicle program currently in Owego. It is also shifting manufacturing work from Middle River, Md. to Camden, Ark., affecting about 60 jobs.
It expects all the moves to save it about $150 million over 10 years.
Lockheed Martin is based in Bethesda, Md. and employees about 133,000 people worldwide. Its shares rose 60 cents to close at $69.15 on Thursday.