Rich Abott
Defense Daily
Connecticut Gov. Dannel Malloy (D) last week announced a partnership with General Dynamics Electric Boat (EB) wherein the company will invest $852 million in its Groton shipyard and hire thousands more workers over 17 years to prepare to build the Columbia-class ballistic missile submarines (SSBNs)..
The GD EB investment will focus on “significantly expanding” its Groton facility by building a new third dry dock and a manufacturing superstructure to house the construction of the Columbia-class submarines, the governor’s office said.
Over the next 17 years GD said it will make the $852 million in capital investments; increase its workforce by almost 1,900 people, to increase the workforce to over 13,000; and more than double its $250 million annual spending on hundreds of Connecticut in-state suppliers due to increased submarine demand.
The government’s office said as part of the investment agreement the Connecticut Department of Economic and Community Development (DECD) will provide incentives to the company. This includes a $35 million loan for machinery and equipment through the governor’s First Five Plus Program that includes loan forgiveness based on supply chain and employment. It also includes up to $20 million from Connecticut Innovations in sales and use tax exemptions for capital and new construction on the Electric Boat campus.
DECD will also provide the company with an $8 million grant that can only be spent on third-party workforce development initiatives through community colleges, technical high schools, and in-state organizations to benefit the company and its supply chain.
Connecticut will also provide a further $20 million for dredging, needed to allow submarines to be launched form the new planned dry dock and manufacturing superstructure.
“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,” Jeffrey Geiger, GD’s President of EB, said in a statement.
“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, he added.
DECD Commissioner Catherine Smith noted the agreement “will ensure that Electric Boat is capable of meeting its submarine building demands over the next several years while significantly increasing its workforce.”