WEDNESDAY, MAY 9, 2018
General Dynamic Electric Boat recently announced that it will be spending roughly half of its $1.7 billion multi-year capital expenditure plan on upgrading its Groton, Connecticut, manufacturing facility, part of a larger move to allow for building the Columbia-class nuclear powered ballistic missile submarine.
The economic development plan includes spending $852 million on upgrades for the Groton facility, covering new machinery; a third dry dock, which will require $20 million on dredging the Thames River; and manufacturing superstructure.
Shipyard Expansion
According to USNI News, GDEB pledged to increase annual spending to more than $500 million on parts and materials from several hundred Connecticut-based suppliers.
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General Dynamic Electric Boat recently announced that it will be spending roughly half of its $1.7 billion multi-year capital expenditure plan on upgrading its Groton, Connecticut, manufacturing facility, part of a larger move to allow for building the Columbia-class nuclear powered ballistic missile submarine. |
“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,” said Connecticut Gov. Dannel Malloy. “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.”
With the Navy planning to purchase 12 Columbia-class submarines—each costing $7.3 billion—the new group of submersibles will be replacing Ohio-class nuclear ballistic-missile submarines. This investment from the Navy is part of pitches from the Pentagon to Congress regarding a steady, predictable flow of money during budget requests.
Connecticut is offering GDEB $20 million in tax breaks and up to $35 million in loans to help purchase new machinery, and the loans may qualify for forgiveness if the company meets employment targets. The shipbuilder is also eligible for an $8 million state grant to train employees hired by subcontractors.
“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,” said GDEB president Jeffrey S. Geiger. “It will also improve our competitive position, help us to secure additional work in the future, and solidify the region’s title of Submarine Capital of the World.”
Tagged categories: Business operations; Marine; Program/Project Management; Shipyards; Submarine; U.S. Navy
