Connecticut Gov. Dannel P. Malloy has announced a historic partnership with General Dynamics Electric Boat (EB) that will help the company grow its workforce by nearly 1,900 (bringing it to more than 13,000 by 2034), allow for capital investments of greater than $800 million in the state over the next 17 years, and more than double their spending on in-state suppliers, which are located in 102 Connecticut cities and towns. Connecticut's investment will allow EB to maintain its position as a high-quality provider of submarines to the U.S. Navy, thus capturing additional overhaul and repair work while continuing the delivery of the Virginia Class Submarines.
"Since the American Revolution, the Provision State has earned its reputation as the Submarine Capitol of the World, due to our ingenuity and ceaseless resolve," Gov. Malloy said. "From helicopters, to fighter jets and submarines, Connecticut is a worldwide leader in aerospace and defense manufacturing. Our state's partnership with General Dynamics EB will ensure that thousands of good-paying manufacturing jobs continue to grow for years to come. This is not just a good deal for southeastern Connecticut, it is a good deal for residents across the state, where over 700 supply chain companies with locations in over 100 towns will see increased demand from the best submarine maker in the world."
"This is good news that will create jobs and strengthen the relationship between Electric Boat and the state of Connecticut for decades to come," Lt. Governor Nancy Wyman said. "Connecticut has proudly been home to EB for more than a century. I commend Gov. Malloy, President Geiger and their teams for ensuring EB's continued leadership on defense."
"This investment provides crucial support for the workforce development and facility expansion that will help EB grow, increase its economic contribution to the region and continue to deliver the world's most capable submarines to the U.S. Navy," EB President Jeffrey S. Geiger said. "It will also improve our competitive position, help us to secure additional work in the future and solidify the region's title of Submarine Capital of the World."
Over the course of the agreement, General Dynamics EB will:
- Grow its workforce by 1,881, bringing its total to more than 13,000
- Make capital investments of $852 million
- More than double their $250 million annual spending on over 700 Connecticut suppliers as a result of increased demand for submarines from the U.S. Navy.
"Today's commitment from EB - bolstered by important state aid - is a major win for Connecticut jobs and our national security," Senator Richard Blumenthal said. "EB's Connecticut workforce produces the best submarines in the world, bar none, vital to our nation's undersea capabilities abroad. As a member of the Senate Armed Services Committee, I am committed to ensuring that our federal defense funding supports this critical work - empowering Connecticut's economy and securing our seas."
"Today's announcement is fantastic news for Connecticut's future role in the historic growth of America's undersea fleet," Congressman Joe Courtney said. "The investment by Congress in submarines, which has been steadily growing over the last eight years, will continue upward for decades to come. Strengthening Connecticut's workforce will ensure our state's tradition of excellence will continue to make us the submarine capital of the world. The manufacturing pipeline, which started three years ago, is a successful model that the Governor's plan will enhance for future generations of America's ship builders."
"Just like we did for Sikorsky, just like we did for UTC, today Connecticut is stepping up to secure jobs and an economic future for Connecticut residents, this time right here in southeastern Connecticut," State Senator Cathy Osten (D-Sprague) said. "EB and its subcontractors and hundreds of associated small businesses in this region are going to benefit from our investment today, as are thousands of Connecticut citizens who will get the training they need to secure a job that will allow them to buy a home, start a family and live and succeed right here in Connecticut."
The Connecticut Department of Economic and Community Development (DECD) will provide incentives over the course of the agreement, including a $35 million loan for machinery and equipment through Gov. Malloy's First Five Plus Program with loan forgiveness based on supply chain spend and employment, and up to $20 million from Connecticut Innovations in sales and use tax exemptions for capital and new construction on the EB campus. As part of the agreement, DECD will also provide EB an $8 million grant, which may only be spent on third-party workforce development initiatives through community colleges, technical high schools and organizations in Connecticut, such as the Eastern Workforce Investment Board to benefit the company and its manufacturing supply chain.
In addition, the state will provide $20 million for dredging, allowing submarines to be launched from a new dry dock and manufacturing superstructure being built to support new submarine construction.
"This historic agreement will ensure that EB is capable of meeting its submarine building demands over the next several years while significantly increasing its workforce," DECD Commissioner Catherine Smith said. "This company is one of the regions most valued employers and their expansion means great things for the regional and state economies."
For more information contact:
General Dynamics Electric Boat
75 Eastern Point Road
Groton, CT 06340
860-433-3000
www.gdeb.com