Cathy Osten

Osten Joins Governor, Electric Boat President in Announcing Historic State Business Investment

Groton Submarine Maker to Retain and Grow Its State Workforce to More Than 13,000 Jobs While Investing More Than $800 Million in Connecticut

NEW LONDON—With Electric Boat’s historic submarine base across the Thames River as a backdrop, state Senator Cathy Osten (D-Sprague) today joined Governor Dannel P. Malloy and General Dynamics Electric Boat President Jeffrey S. Geiger to announce a historic partnership between Connecticut and Electric Boat that will help the company grow its Connecticut workforce by nearly 1,900 people—bringing its total local workforce to more than 13,000 by 2034—while EB will spend more than $800 million in Connecticut over the next 17 years, including more than doubling its in-state spending on its network of local suppliers.

In January, Sen. Osten introduced a bill, Senate Bill 3, “An Act Concerning Funding for Submarine Jobs and Opportunities,” seeking $150 million in state aid over a decade for Electric Boat to accomplish many of the same goals—infrastructure improvements, job training, and dredging—that Gov. Malloy announced today.

Connecticut’s investment will now allow Electric Boat to maintain its position as the highest-quality provider of submarines to the U.S. Navy, thus capturing additional overhaul and repair work while continuing the delivery of Virginia Class Submarines.

“Just like we did for Sikorsky, just like we did for UTC, today Connecticut is stepping up to secure jobs and an economic future for Connecticut residents, this time right here in southeastern Connecticut,” Sen. Osten said. “Electric Boat and its subcontractors and hundreds of associated small businesses in this region are going to benefit from our investment today, as are thousands and thousands of Connecticut citizens who will get the training they need to secure a job that will allow them to buy a home, start a family, and live and succeed right here in Connecticut. I want to thank Governor Malloy for moving forward so quickly on these essential projects. It’s a great day for our state, for our region, for our economy and for Connecticut’s future.”

General Dynamics Electric Boat designs, constructs, and repairs submarines for the U.S. Navy. Currently, the company produces two submarines a year and is ramping up to build three by 2021. The company is also significantly expanding its Groton facility through the construction of a new dry dock and manufacturing superstructure. This new facility will house the construction and new Columbia-class nuclear powered ballistic missile submarines which will be replacing the ageing Ohio-class. To support this increased manufacturing, Electric Boat will be training and hiring 18,000 new employees over the next decade.

“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 submarines to the U.S. Navy,” Electric Boat President Jeffrey S. Geiger said. “We at Electric Boat very much appreciate the continued support that Senator Osten has shown. Her interest in our workforce has been a constant.”

Under the agreement announced today by Gov. Malloy—some of which requires approval by the State Bond Commission—the Connecticut Department of Economic and Community Development (DECD) will provide a $35 million loan for machinery and equipment through Connecticut’s First Five Plus Program, with loan forgiveness based on supply chain spend and employment. Electric Boat will also receive as much as $20 million from Connecticut Innovations in sales and use tax exemptions for the capital and new construction it plans at its Groton campus. The DECD will also provide Electric Boat an $8 million grant to be used only on third-party workforce development initiatives through community colleges, technical high schools, and organizations in Connecticut, such as the Eastern Workforce Investment Board to benefit the company and its manufacturing supply chain.

Connecticut will also spend $20 million for dredging Electric Boat’s harbor area, allowing submarines to be launched from a new dry dock and manufacturing superstructure being built to support new submarine construction.

In exchange, Electric Boat will grow its workforce by 1,881 employees (bringing its total workforce to more than 13,000), make $852 million worth of capital investments to its Groton facility, and more than double the $250 million they spend annually at 700 Connecticut suppliers in 100 Connecticut towns.

“Since the American Revolution, the Provision State has earned its reputation as the Submarine Capitol of the World, thanks to our ingenuity and ceaseless resolve,” Gov. Malloy said. “From helicopters, to fighter jets and submarines, Connecticut is a worldwide leader in aerospace and defense manufacturing. Our state’s partnership with General Dynamics Electric Boat will ensure that thousands of good-paying manufacturing jobs continue to grow for years to come. 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.”