One person is dead after a shooting Friday morning at Ingalls Shipbuilding, a Mississippi shipyard that builds vessels for the U.S. Navy and Coast Guard, police said. 

Officials identified the alleged shooter as Curtis James Jr., 25, of Mobile, Alabama. He is in custody.

Police said at a news conference Friday afternoon that the shooting was a disagreement between two men who knew each other. The argument started earlier this week, officials said. A Pascagoula County Deputy police chief referred to it as a "workplace dispute." 

Police said they were called to the scene around 7:30 a.m. local time. The shooting happened near one of the ships under construction. The vessel was already in the water, police said. Police said they did not believe the ship had been damaged. 

Police did not release the name of the person who was killed. HII, Ingalls Shipbuilding' parent company, said the victim was a shipbuilder. In the news conference, police said the victim was from Prichard, Alabama. 

During the incident, personnel were urged to shelter in place, HII said. The alleged shooter was arrested about an hour-and-a-half after the shooting. 

Ingalls Shipbuilding, in Pascagoula, is the largest supplier of U.S. Navy surface combatants, according to its website. It employs 8,000 people and is the largest manufacturing employer in Mississippi. The shipyard has built U.S. Navy and Coast Guard vessels for 85 years. 

Pascagoula is the county seat of Jackson County, Mississippi, and is home to about 22,000 people.