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Technology Stocks : LOCKHEED MARTIN, (LMT)
LMT 488.05-0.8%Nov 3 3:59 PM EST

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To: Tech Master who wrote (614)11/15/1999 10:56:00 AM
From: Lee Ring  Read Replies (1) of 732
 
Georgia Senators Dismiss Rumors of Lockheed Martin Plant Closing
Nov. 14 (The Washington Times/KRTBN)--When a company the size of Lockheed Martin Corp. signals that it is considering shutting down operations in a particular state, it usually stirs up a hornet's nest of worry among lawmakers.
But when Georgia's congressional delegation learned that Lockheed's Marietta, Ga., facility may be in danger of closing, the reaction was nearly uniform: It's just speculation.

"It's just a rumor," said Rep. Bob Barr (R-Ga.), who represents the district where the plant is located. "We've been dealing with this kind of speculation for years and it has proven false in each case."

Soon after the Wall Street Journal reported Friday that Lockheed is thinking about selling or eliminating some of its core military-aircraft operations, including the Marietta plant, Georgia Republican Sen. Paul Coverdell's staffers were on the phone with Lockheed officials. Coverdell himself followed up with a phone call later in the day.

Coverdell, a member of the Senate Republican leadership, was reassured.

"From our perspective, every arrow is pointing in the other way,"
said Laura Cox, Coverdell's communications director. "The company has
taken measures to streamline and increase the efficiency at the
Marietta plant and the senator is confident that those measures will
ensure its viability."
Democratic Sen. Max Cleland, a member of the Senate Armed Services Committee, said he was not surprised by the news. Rumors have been circulating about the Marietta plant for as long as he can remember.

But Cleland said that Lockheed would not have been forced into considering such actions if the House had not "played mischief" with funding for the F-22 fighter jet program.

Rep. Jerry Lewis (R-Calif.), chairman of the House panel overseeing military spending, nearly succeeded in eliminating funding to start building the aircraft next year, saying the planes were too expensive and untested.

The F-22 program is now about $500 million short of Lockheed's funding goal, which Cleland said is the reason for budget cuts in the C-130J program. The C-130Js cargo planes are almost entirely built at the Marietta facility. The F-22 is partially assembled at the plant.

"Basically the House told Lockheed, `We'll build the planes, but you have to take it out of your own hide,'" Cleland said. "The House action caused the entire Congress to borrow from Peter to pay Paul."

Beneath the lack of concern displayed by the Georgia delegation is the palpable belief that the Marietta plant would not be facing such near-death experiences if former House Speaker Newt Gingrich were still at the helm or if former Georgia Sen. Sam Nunn were still in the Senate.

"I think Gingrich would have reigned in Lewis," Cleland said.

And even Lewis himself has said that the F-22 program would not have
been put in jeopardy had Gingrich been around.
The real question now is what will the Georgia lawmakers do to ensure that the so-called "rumor" does not become fact.

Cleland said that he has brokered a deal to sell about a half-dozen C-130Js to the Kuwaiti government with the hope of keeping the plant "warm" until the Air Force starts buying the cargo planes in large numbers starting in 2002.

Cleland said the deal would be announced in January. He also said that the Italian government has expressed an interest in purchasing four of the cargo planes.

"We have to keep the line warm," Cleland said. If Lockheed closes down the Marietta plant and the government needs C-130Js in 2002, it would cost an estimated $680 million to crank up the operations again.

And even if Georgia is missing some of the clout it once had in Congress, lawmakers say they will lobby hard to keep anything from happening to the Marietta plant.

They note that they pulled together as a bipartisan coalition to win funding for the F-22 against the formidable opposition mounted by Lewis and they predict they can do it again.

"No one can diminish the influence Gingrich had as the speaker of the House, nor can they diminish Sam Nunn's role on Armed Services, but that doesn't mean that there hasn't been a significant contribution by the Georgia delegation," said Rep. Johnny Isakson (R-Ga.)

When a newspaper ran an article two months ago questioning the future of the Marietta plant, Isakson spoke to Lockheed officials and they emphatically told him that there were no plans to shut down the facility.

"I have seen the (Wall Street Journal) article and it names unnamed sources, which I am not a big fan of," Isakson said. "They've told me that there are no plans to close Marietta and I take them at their word."

Rep. John Lewis (D-Ga.) said he was "shocked" to hear that the Marietta plant might be in trouble. Just last week, he met with the president of the Marietta plant and a group of Lockheed lobbyists. There was no mention of it, and, in fact, the group was enthusiastic about the Marietta operations.

"It would be news to me and news to our delegation," Lewis said. "We've worked too hard for Lockheed and its employees for there to be any consideration of moving it."

The Lockheed plant is critical to the entire Southeast, Lewis said, noting that its employees come from Alabama and South Carolina in addition to Georgia. "It would be hard for me to believe that they would do this without telling us."

Rep. Saxby Chambliss (R-Ga.), a member of the House Armed Services Committee, said he found it hard to believe, too.

The Air Force has said they plan to buy 339 F-22s and 150 C-130Js.

The Marine Corps has testified that they need 51 C-130Js, Chambliss
said.
"Given this commitment, it is obvious that the C-130J and F-22 programs are critical for our nation and our national security," Chambliss said.

Chambliss cast doubt on the news article, noting that the workers in Georgia who build the aircraft are some of the most highly skilled and highly trained in the country.

"With this quality work force, in addition to the low cost of doing business, there is no better place than Georgia for production of these airplanes," Chambliss said. "As a member of the House Armed Services Committee, I remain committed and supportive of these vital defense programs."

By Rebecca Carr
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