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September 18, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Electric Boat commits to investing over $800M in state

General Dynamics Electric Boat will grow its workforce by nearly 1,900, bringing it to more than 13,000 by 2034; make capital investments of greater than $800 million in the state over the next 17 years; and more than double its spending on in-state suppliers, many of which are in Fairfield County.

Photo courtesy General Dynamics Electric Boat

That was the takeaway from Gov. Daniel Malloy’s announcement of an agreement between the state and the Groton-based company. Gov. Malloy said the deal with EB “isn’t just a good deal for southeastern Connecticut, it’s 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.”

The Connecticut Department of Economic and Community Development will provide incentives over the course of the agreement, including a $35 million loan for machinery and equipment through 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 Electric Boat 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 investment provides crucial support for the workforce development and facility expansion that will help Electric Boat 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 Electric Boat will:

  • Grow its workforce by 1,881, bringing its total to more than 13,000;
  • Make capital investments of $852 million
  • More than double its $250 million annual spending on over 700 Connecticut suppliers as a result of increased demand for submarines from the U.S. Navy.

Connecticut’s investment will allow EB to maintain its position as “the highest-quality provider of submarines to the U.S. Navy,” Malloy said, thus capturing additional overhaul and repair work while continuing delivery of the Virginia Class Submarines.

“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,” the governor said.

General Dynamics Electric Boat designs, constructs, and repairs submarines for the U.S. Navy. Currently, the company produces two submarines a year and is ramping up to build three by 2021.

“Today’s commitment from Electric Boat – bolstered by important state aid – is a major win for Connecticut jobs and our national security,” Sen. Richard Blumenthal said. “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.”

EB suppliers in Fairfield County include companies in Stamford, Norwalk, Bridgeport, Danbury, Fairfield, Newtown, and Stratford.