General Dynamics NASSCO and Daewoo Ship Engineering Company Announce Agreement to Build Jones Act Ships

Apr 03, 2006, 01:00 ET from General Dynamics NASSCO

    SAN DIEGO, April 3 /PRNewswire-FirstCall/ -- General Dynamics NASSCO, a
 wholly owned subsidiary of General Dynamics (NYSE:   GD), and Daewoo Ship
 Engineering Company (DSEC), a wholly owned subsidiary of Daewoo Shipbuilding
 and Marine Engineering (DSME) based in Busan, Korea, today announced a formal
 teaming agreement to build ships for the U.S. market under the Jones Act.  The
 Jones Act, among its many provisions, requires ships that carry cargo between
 U.S. ports to be built in the United States.
     Under the agreement, DSEC will provide the detail designs, support
 services and some of the material necessary for ship production.  NASSCO will
 also procure material and will provide the labor and facilities to construct
 the ships here.
     "NASSCO is teaming with a world-class ship design and construction support
 company to address an important market for this shipyard," said Frederick J.
 Harris, president of General Dynamics NASSCO.  "This extraordinary partnership
 with DSEC will help NASSCO retain its position as a leading builder of ocean-
 going Jones Act ships."
     "We are very much impressed by NASSCO's naval ship-based advanced
 technology, management system and well-organized personnel, as well as its
 business strategy," said In-Sung Lee, president and CEO of Daewoo Ship
 Engineering Company.  "We believe this collaboration could be a cornerstone
 for U.S.-Korean shipbuilding partnerships as well as build upon both
 companies' remarkable records in the market."
     DSEC was founded to contribute to the shipbuilding industry in accordance
 with the global network business plan of DSME.  It supplies an integrated
 shipbuilding engineering package that is composed of ship design, procurement
 and inspection services to overseas shipyards, based on DSME's experience.
     With the world's second largest shipyard, DSME has a worldwide
 shipbuilding and offshore plant business.  It is headquartered in Seoul,
 Korea, employs approximately 20,000 people worldwide and had 2005 revenue of
 approximately $5 billion.  Additional information on DSME and DSEC can be
 found at and, respectively.
     NASSCO is currently building its fourth double-hulled crude oil tanker for
 BP Shipping Company of Alaska, under a four-ship contract.  In addition to the
 BP ships, NASSCO has contracts to build nine T-AKE combat logistics force
 ships for the U.S. Navy.  Four of these ships are under construction; the
 first will be delivered later this year.  Additional information on NASSCO can
 be found at
     General Dynamics, headquartered in Falls Church, Virginia, employs
 approximately 72,200 people worldwide and had 2005 revenue of $21.2 billion.
 The company is a market leader in mission-critical information systems and
 technologies; land and expeditionary combat systems, armaments and munitions;
 shipbuilding and marine systems; and business aviation.  More information can
 be found online at

SOURCE General Dynamics NASSCO