Electric Boat promises jobs, construction in exchange for state support
New London — Gov. Dannel P. Malloy Tuesday announced a “historic,” long-term partnership between the state and Electric Boat that involves a roughly 250 million annually it spends with more than 700 in-state suppliers in Connecticut.
To be able to concurrently build Virginia-class attack submarines, 15 of which have been delivered to the Navy, and a new class of ballistic missile submarines that will begin being built in a few years, EB will spend more than 83 million in state funding to EB.
“This investment will allow EB to maintain its position as the highest quality provider of submarines to the United States Navy thus capturing additional overhaul and repair work while continuing to deliver the Virginia-class submarines and growing jobs in Connecticut,” Malloy said.
The state Department of Economic and Community Development will provide a 20 million in sales and use tax exemptions for capital and new construction at EB’s Groton campus. The department will also provide a 20 million for dredging in connection with EB’s plans to construct a new dry dock and construction bay on the south side of its Groton campus. The U.S. Army Corps of Engineers dredges the Thames River, but not the area along EB’s property line in Groton, according to Malloy.
Jeffrey Geiger, president of EB, said the state’s investment will help “improve our competitive position and help us secure additional work in the future.”
“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 submarine to the United States Navy,” Geiger said.