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Alabama Remains Supportive of EADS North America

Governor Bob Riley (R-AL) made a speech yesterday to the Economic Development Association of Alabama at which he discussed upcoming industries moving to Alabama. He stressed his administration’s continuing efforts to move large manufacturing facilities to the state. Riley will leave office this year due to term limits.

He is hoping that EADS North America will win the KC-X contract before he does go as one of the key industrial developments for the state. Now Riley is always going to be positive about this effort right up to the time a winner is announced but it does illustrate how well EADS has built relations with leadership in Southern states that have benefited from their investment.

Riley has seen some successes with the building of a Hyundai assembly plant in the state and the ongoing construction of a steel mill by ThyssenKrupp which will open in the near future.

Greece Loses Submarine Contracts

Normally it is the government customer who ends a contract for non-performance or because they cannot afford it anymore. Today it was announced by ThyssenKrupp that the shipbuilder was ending a contract with Greece for new construction as well as upgrading existing ships and submarines. The company claims that the Greece Ministry of Defense has failed to pay them for the work done.

The original contract was for the construction of four advanced diesel electric submarines as well as modifying and upgrading three older ones already in use by Greece. In 2007 the first new submarine was ready but Greece didn’t take delivery and refused payment. ThyssenKrupp has been trying to go into arbitration over the deal but has now decided to go ahead and cancel the contract. The company has seen major contraction and loss of business due to the global economic downturn.

The Greek government is blamed for failing to negotiate or move out on the contract. There is an election upcoming and the opposition is expected win and has used this issue as part of their campaigning.

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