( CNN ) -- Northrop Grumman Corp. plans to close a New Orleans , Louisiana , shipbuilding operation in 2013 and consolidate its Gulf operations , affecting thousands of jobs , the company announced Tuesday . Louisiana Gov . Bobby Jindal , who has been meeting with company officials , said he will do everything possible to keep the Avondale yard open . `` This presents a tremendous economic challenge to the Avondale area , '' Jindal said in a statement . `` The roughly 5,000 direct jobs at the Avondale site support about 6,500 additional indirect jobs in the New Orleans region , meaning a total of roughly 11,500 jobs are at risk due to this change in the Navy 's procurement program . '' Northrop-Grumman said the decision was a necessity . `` The consolidation will reduce future costs , increase efficiency , and address shipbuilding overcapacity , '' Wes Bush , chief executive officer and president , said in a statement . `` This difficult , but necessary decision will ensure long-term improvement in Gulf Coast program performance , cost competitiveness and quality . '' As a result of the consolidation , Northrop Grumman , which has owned the Avondale operation since 2001 , said it will recognize an estimated pre-tax charge of $ 113 million in the second quarter . The company builds the LPD 17 San Antonio-class amphibious troop and cargo vessel for the U.S. military . Two other facilities that work on the LPD program also will be impacted , said Brandon R. `` Randy '' Belote III , vice president of strategic communications . The LPD vessels will be built only in Pascagoula , Mississippi , after the Avondale closure . Shipbuilding will continue in Gulfport , Mississippi . The company also said it is considering options for its the shipbuilding business . `` Recognizing our company 's long-term strategic priorities , we foresee little synergy between shipbuilding and our other businesses . It is now appropriate to explore separating shipbuilding from Northrop Grumman , '' said Bush . Options include spinning the division off to shareholders . Although the state already is considering options for new work at the New Orleans shipyard , Jindal said he is asking Secretary of Navy Ray Mabus and the federal government to prevent jobs at Avondale from being lost . Northrop Grumman will give details of the plans to investors Wednesday morning . Bush said the company will work with federal , state and local officials to `` explore alternate uses for Avondale as the last two ships under construction reach completion . '' Northrop Grumman said it anticipates some opportunities in Pascagoula for Avondale shipbuilders who wish to relocate . Belote did not specify how many jobs might be moved .
Northrop Grumman will close New Orleans shipbuilding facility in 2013 . Louisiana Gov . Bobby Jindal trying to keep New Orleans yard open . Comment: