Connecticut investing in local defense manufacturing company
GROTON–On Wednesday Gov. Dan Malloy announced that the state’s Department of Economic and Community Development is investing in Connecticut’s defense manufacturing industry.
Electric Boat, a General Dynamics subsidiary that designs and builds nuclear submarines, is investing $31.5 million in its own project, which is expected to add 200 new employees, bringing the Connecticut employee roster to 8,700. The department will also give the company a $10 million loan to help it expand its facilities in Groton. However, if the company keeps its employment obligation of 8,900 jobs over the next two years, it may be eligible for a full loan forgiveness. Otherwise, the loan will have an interest rate of two percent for a ten-year term.
“Our state’s defense product and parts manufacturing sector is becoming increasingly important to the Pentagon’s supply chain and, ultimately, our national defense strategy as illustrated by the growing number and value of contracts awarded to Connecticut-based industry leaders like Electric Boat over the past decade,” said Malloy.
Electric Boat is the U.S. Navy’s prime contractor for the Navy’s Virginia Class nuclear submarines. About 600 vendors across Connecticut are part of subcontracts to build these submarines, creating more than $600 million worth of products and services for the defense program. In fact, Electric Boat won a Navy contract worth $17.6 billion in April to construct the next submarines in the Virginia Class.
“Today’s announcement supports the required facility expansion that will help Electric Boat affordably deliver submarines to the U.S. Navy,” said Electric Boat President Jeffrey S. Geiger. “The state’s investment will also enable Electric Boat to grow, and remain a successful business and significant contributor to the economic health of Southeastern Connecticut.”
The expansion is needed to make space for more engineers, designers and other works needed to complete the Virginia Class work, as well as the Ohio Replacement Program, the newest submarine class.