General Dynamics Electric Boat will reportedly grow its workforce by nearly 1,900 by 2034, and undertake capital investments of greater than $800 million over the next 17 years at its facility in Groton, Connecticut. The location builds Virginia Class Submarines.
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, according to Governor Dannel P. Malloy’s Office.
The company is significantly expanding its Groton, Connecticut, facility through the construction of a new dry dock and manufacturing superstructure. This new facility will house the construction and new Columbia-class nuclear powered ballistic missile submarines which will be replacing the ageing Ohio-class. To support this increased manufacturing, Electric Boat will be training and hiring 18,000 new employees over the next decade.
“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; It will make capital investments of $852 million and more than double their $250 million annual spending on over 700 Connecticut suppliers.
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 Governor Malloy’s First Five Plus Program, with loan forgiveness based on supply chain spend and employment; The company will also receive 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.
“Since the American Revolution, the Provision State has earned its reputation as the Submarine Capitol of the World, thanks to our ingenuity and ceaseless resolve,” Governor Dannel P. 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 Electric Boat will ensure that thousands of good-paying manufacturing jobs continue to grow for years to come. This 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.”