Northrup Grumman: Jobs will stay in U.S.

ALBUQUERQUE, March 4 (UPI) -- A Northrop Grumman spokesman said Tuesday that a $40 billion U.S. Air Force contract announced last week wouldn't create new jobs overseas.

The announcement that Northrop and the European Aeronautic Defense and Space Co. had trumped Boeing to secure the large contract sparked alarm that U.S. defense procurement was being captured by foreign companies.

Some are calling for a review of the bidding process on the contract for refurbished tanker planes, which is expected to grow into more than $100 billion in new business over 30 years.

To counter concerns, Northrop spokesman Tim Paynter said Tuesday 400 aerospace jobs would be created in Albuquerque and that "we're not expecting any new jobs will be created overseas."

"If you look at the dollar amount, we'll directly inject $40 million into your economy per year," Paynter told the Albuquerque Journal.

The Northrup-EADS venture is also expected to create 9,000 jobs around Mobile, Ala., where a large assembly plant will be built.