May 1, 2018 1 COMMENTS

Electric Boat to receive up to $83M in state aid for job growth, expansion

Wikimedia Commons
Wikimedia Commons
The USS Virginia, a Virginia-class submarine.

Groton submarine maker General Dynamics Electric Boat will receive up to $83 million in state aid to help it add more than 1,881 new jobs over the next 17 years, the governor announced Tuesday.

Gov. Dannel P. Malloy said the Connecticut Department of Economic and Community Development (DECD) will provide several incentives to Electric Boat over the life of the agreement, which runs through 2034. At that point, EB pledges to have more than 13,000 employees in the state.

The funding includes a $35 million loan for machinery and equipment purchases and up to $20 million from Connecticut Innovations in sales and use tax exemptions for capital and new construction on Electric Boat's Groton campus.

Other DECD funding includes $20 million for dredging to allow submarine launches from a new dock and manufacturing a superstructure to support new submarine construction.

The state will also provide an $8 million grant for third-party workforce development initiatives through community colleges, technical high schools and organizations across Connecticut.

Malloy said the funding will help Electric Boat initiate capital investments of more than $852 million over the next 17 years, which will also double the company's $250 million in annual spending on Connecticut suppliers located in 102 cities and towns.

The governor said the funding ensures Electric Boat's sustainability and growth for years to come, calling Connecticut the nation's "Submarine Capitol of the World."

"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," Malloy said.

Founded in 1899, Electric Boat designs, constructs and repairs submarines for the U.S. Navy. Officials said the company produces two submarines a year.

Comments

ric bee

05/03/18 AT 08:10 AM
Can't Corrupticut let any private business remain untainted by its dirty money?
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