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State Senator

Gayle Slossberg

Deputy Majority Leader

Representing Milford, Orange, West Haven & Woodbridge

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Contact: Dan Doyle

September 23, 2016

Slossberg Applauds Agreement To Keep Sikorsky Headquarters And Jobs In Connecticut

Sikorsky will retain and create approximately 8,000 jobs in Connecticut

Senator Gayle Slossberg joined Governor Dannel P. Malloy, state and local leaders, and executives from Lockheed Martin and Sikorsky in applauding the announcement of an agreement that will keep Sikorsky’s worldwide headquarters in Connecticut, where they will retain and grow approximately 8,000 jobs and dramatically increase their investments among Connecticut suppliers. Sikorsky, which has been in Connecticut for more than 85 years, was purchased by Lockheed Martin from United Technologies in November 2015.

“I am grateful that an agreement has been reached which will save thousands of jobs throughout Connecticut, including over 900 jobs in the communities I represent,” said Senator Gayle Slossberg (D-Milford). “This is very good news for our state and local economies, and I look forward to reviewing the details of the agreement.”

“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,” Governor Malloy said. “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.”

“This deal represents a significant first step in the three-way partnership among Sikorsky, the state and Teamsters Local 1150,” Sikorsky President Dan Schultz said. “It is important for the company’s ability to meet our customer requirements, for our employment stability amid continuing and difficult financial pressures on our industry, and for our future. I thank our partners for their support and look forward to completing this deal. Assuming the state’s proposal is approved by the legislature and the union agreement is ratified, Sikorsky will be able to transition the CH-53K production work to Connecticut.”

Under the deal, Sikorsky will build nearly 200 CH-53K King Stallion Helicopters—which is on its way to becoming the world’s premier heavy lift helicopter—in Connecticut for the United States Navy until at least 2032. Lockheed Martin has considered numerous states for production of the CH-53K.

The agreement will require state legislative approval via special session in the coming weeks. It will also require an affirmative vote by the local union.

Over the term of the agreement, Lockheed Martin will:

  • Keep the Sikorsky headquarters in the state and maintain Connecticut as a primary production facility for its government based helicopter business;
  • Retain and grow its full time employment in Connecticut to more than 8,000 by the end of year 14;
  • Nearly double its spending of $350 million per year with local Connecticut suppliers throughout the state;
  • Increase its capital spending for machinery and equipment by 22 percent.

In exchange, the state will provide financial incentives totaling up to $220 million over the term of the agreement in the following ways:

  • The company will earn grants of up to $8.57 million on an annual basis over the term of the agreement by meeting certain benchmarks, such as retaining at least the minimum level of each category; growing jobs; payroll spending; utilizing in-state suppliers; and deploying capital for machinery, equipment, and other long term investments.
  • Sales and use taxes will be exempted up to $5.7 million per year over the term of the agreement.
  • If Lockheed Martin exceeds the target level employment by 100 to 550 jobs in any given year of the agreement, it will be eligible for a performance incentive grant of up to $1.9 million, for a total of up to $20 million.

This agreement presents an opportunity to strengthen one of three critical components of Connecticut’s defense industry sector and to shore-up the state’s standing as a leader in fields of aerospace technology and manufacturing. The increased spending by Lockheed Martin in Connecticut’s supply chain alone will exceed the totality of the state’s full incentive package.



Chair: Education; Housing

Vice Chair: Government Administration & Elections; Regulation Review

Member: Appropriations

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