HARTFORD, Conn. (AP) - The state of Connecticut finalized a deal Tuesday that will help General Dynamics Electric Boat pay for improvements needed to accommodate a $5.1 billion contract with the U.S. Navy and grow its workforce by nearly 1,900 employees.
Democratic Gov. Dannel P. Malloy said it’s not just a “good deal” for southeastern Connecticut, where Electric Boat is located, but for the entire state where more than 700 supply chain companies in more than 100 towns “will see increased demand from the best submarine-maker in the world.” Electric Boat currently builds two submarines a year and is ramping up to build three by 2021.
“Our state’s partnership with General Dynamics Electric Boat will ensure that thousands of good-paying manufacturing jobs continue to grow for years to come,” Malloy said.
Under the agreement, Connecticut will provide a $35 million forgivable loan for machinery and equipment; up to $20 million in tax exemptions for capital and new construction; $20 million for dredging; and $8 million for workforce development programs through community colleges, technical high schools and various organizations.
In return, Electric Boat plans to make $852 million in capital investments over 17 years and boost hiring by 1,881 workers to more than 13,000 total employees by 2034.
Company president Jeffrey S. Geiger said the state’s financial assistance will help improve Electric Boat’s competitive position and “help us secure additional work in the future and solidify the region’s title Submarine Capital of the World.”
Electric Boat is building a new dry dock and manufacturing superstructure in Groton that will serve the new Columbia-class nuclear powered ballistic missile submarines that will replace the Navy’s aging Ohio-class subs.
Democratic state Sen. Cathy Osten, of Sprague, welcomed the news. She proposed legislation this session that would have provided Electric Boat with $100 million for improvements while setting aside another $50 million to train workers. She said she still plans to push for more workforce development funds for defense industry jobs across Connecticut. The legislative session ends May 9.
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