NORTH KINGSTOWN, R.I. (AP) - Rhode Island plans to spend $34 million to help General Dynamics Electric Boat expand its presence in the state and hire 1,300 new employees.
Democratic Gov. Gina Raimondo announced Thursday that the Navy contractor will receive $20 million in tax credits. The state is also investing $14 million to modernize the Quonset Business Park, where the Groton, Connecticut-based company has a manufacturing facility to build Navy submarines.
“Today is about the strongest symbol that we could ever have that we are back in the business of making things,” Raimondo said at the press conference.
Raimondo visited the site of the planned expansion with members of Congress and company executives.
“This investment makes it very clear to our U.S. Navy customer that Rhode Island is ready, willing and able to support our efforts to build a great submarine fleet,” said Jeffrey Geiger, president of Electric Boat.
Electric Boat has agreed to spend nearly $800 million to expand its manufacturing facility by 1.3 million square feet. The state says that will support 600 construction jobs.
The company currently employs about 4,300 people in Rhode Island.
The deal comes days after Connecticut reached a similar one with the Electric Boat, providing more than $80 million in forgivable loans, tax credits, and other incentives for the company to boost hiring by 1,881 employees and invest $852 million over 17 years.
Electric Boat is expanding its production of Navy submarines and is expected to add 1.3 million square feet to its current buildings in Rhode Island. The company builds two Virginia-class attack submarines per year with Newport News Shipbuilding in Virginia. Electric Boat is also the prime contractor for the new Columbia class ballistic-missile submarines.
U.S. Sen. Jack Reed, the ranking member of the Armed Services Committee, said the submarines are critical to the nation’s defense. Reed is a Rhode Island Democrat.
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