WNPR

Electric Boat State Aid Deal To Bring New Work, Waterfront Investment

May 1, 2018

Electric Boat says it will expand its waterfront facilities in Groton and increase its workforce by 1,900 jobs, in a partnership with Connecticut that will also see it receive millions of dollar in state aid. 

EB said Navy projections show the military ordering 29 more Virginia-class submarines and 12 of the new Columbia-class boats over next 20 years.

“In order to accomplish this projected work we need to make investments in our facilities, our workforce and our supply chain,” said EB president Jeffrey Geiger, speaking at a ceremony to mark the new state partnership Tuesday.

He said they’re on the cusp of a hiring boom.

“We at Electric Boat are looking out at a bright future with the potential for substantial new work and corresponding growth,” said Geiger.

The company itself says it will make an $850 million investment in its Groton facilities, so that it can work simultaneously on both sub classes, as well as taking in repair work that it’s currently having to turn away.

The state of Connecticut is offering an $80 million aid package that includes tax breaks, loans for equipment, workforce training, and waterfront dredging help.

Governor Dannel Malloy described it as an important long-term investment.

“Our agreement goes on for the better part of 20 years, so we’re talking about an additional generation of work being guaranteed, as well as the Electric Boat headquarter operation and the like that’s part of this,” he told reporters.

In addition to adding direct employment, EB says it plans to double the $250 million it currently spends each year with about 700 Connecticut suppliers.

Second District Congressman Joe Courtney, who has long championed the work of the yard at the federal level said the state's and the company's upcoming investment will bolster the case for including more money for submarine production in the upcoming federal budget round.

"This is just a really profoundly important moment for the state and the region, in terms of making sure that we're going to create a future for young people who live here and their families," said Courtney.