STRATFORD — More details were announced Wednesday about a $220 million deal between the state and Siksorky to keep the company in Connecticut for at least the next 16 years.
On Tuesday, Malloy said that he had reached a deal with Lockheed Martin, the overhead company of Sikorsky, to keep the headquarters in Stratford through 2032; it has already been there for more than 85 years. The deal is subject to legislative approval before it is final. The deal would grow the workforce to about 8,000 jobs in Connecticut by 2030 at the latest. It's currently at about 7,500.
On Wednesday, a press conference was held. Malloy said that the deal nearly didn't happen, but he met with Sikorsky President Dan Schultz on June 2 and they hammered out an agreement.
Malloy also released a statement:
This is a significant deal with wide-reaching ramifications. It ensures that great manufacturing jobs – thousands of them – will remain in Connecticut, and that Sikorsky’s extraordinary record will continue to flourish for years and years to come right here at home.
If we don’t do this deal, we risk losing thousands of good-paying jobs. This isn’t just about Sikorsky and our new relationship with Lockheed Martin – it’s also about the supply chain companies and their employees that will benefit from the CH53K being built by Sikorsky. These companies are in every corner of our state. Today, we are supporting the small- and medium-sized businesses that are the backbone of our state and local economy. This is something that we all should celebrate.”
Under the deal, Sikorsky will base a new project to build nearly 200 new CH-53K King Stallion helicopters for the Navy in Connecticut, and will double its spending on in-state suppliers to about $700 million. In turn, Malloy says that will help strengthen “our standing as an aerospace and manufacturing leader.”
If that helicopter project had been given to another state, which nearly happened, about 3,000 jobs would have been eliminated.
The deal calls for Connecticut to provide up to $220 million in financial incentives to Sikorsky to stay. The money will be conditional on Sikorsky meeting benchmarks, such as growing jobs and payroll and sticking to the agreement to use in-state parts suppliers. There is also an eligibility for a performance incentive bonus if it exceeds goals.
Part of the incentives also includes sales and tax exemptions.
Several Republican legislators are now urging Malloy to call an expanded Special Session of the Legislature so that the deal can be voted on immediately:
Restoring confidence in our state’s future and stabilizing Connecticut’s finances must continue to be our priority.
With this goal in mind, we will soon be presented with a golden opportunity to send a positive message to state businesses and residents.
By expanding the Special Session’s call of measures to be taken up, we can seize that opportunity in a bipartisan fashion.
We write to urge you to convene a meeting of the legislative leaders as soon as possible to discuss the expansion of the call.
At the end of August, Sikorsky announced it would lay off more than 100 employees in Connecticut. Just weeks earlier it was announced that the upkeep for Marine One would be moved out of Connecticut as well.