Loral May Move Missile Plant to Texas or Arkansas

Defense contractor Loral Corp. said Wednesday that it may consider moving its missile production from Newport Beach to one of two LTV Corp. plants in Texas or Arkansas.

Loral Aeronutronic employs about 2,000 people in Newport Beach on land leased from Ford Motor Co. The rent on the land is due to increase dramatically in several years, so parent Loral Corp., based in New York, has said that it may relocate the plant. The company has publicly acknowledged since 1990 that it might make such a move. It disclosed at its annual meeting on Tuesday that it is considering two possibilities.

Spokeswoman Elizabeth Allen said the company might move Aeronutronic’s missile production to either Camden, Ark., or Grand Prairie, Tex. LTV Corp.’s missile group has operations at both locations.

Loral has offered to buy LTV’s missile unit for $240 million. The deal, which must be approved by the judge overseeing LTV’s bankruptcy reorganization, is expected to be completed by the end of August.

“We haven’t purchased the company yet, so nothing has been decided,” Allen said.