Northrop Grumman sets date to build contested tanker plant in Mobile

Despite major opposition to its $40 billion contract to build refueling tankers, Northrop Grumman Corp. and EADS North America has set a date to break ground on its assembly plant in Mobile.

Boeing Co., which also bid on the contract to build the planes, is contesting the contract with the U.S. Air Force.

On June 28, Northrop Grumman and EADS plans to hold a ceremony to start construction on two adjoining assembly plants that will create about 1,500 jobs at Mobile's Brookley Field.

Content Continues Below

"This event underscores the fact that we are ready to get to work now," said Ronald D. Sugar, chairman and CEO of Northrop Grumman. "We need to move forward quickly to provide our men and women in uniform what the Air Force has identified as its No. 1 acquisition priority - the new refueling tankers they so desperately need."

A decision on the disputed contract is expected to come down next month from the Government Accountability Office.