Gov. Dannel Malloy and Lockeed Martin have reportedly reached a deal to keep Sikorsky headquartered in Stratford through 2032.
Malloy said more information will be released on Wednesday about the deal, which is subject to legislative approval before it is final.
Under the deal, Sikorsky will choose Connecticut to build nearly 200 new CH-53K King Stallion helicopters for the U.S. Navy. Lockheed reportedly considered numerous states for production of the helicopter.
Malloy said the deal is expected to retain and grow about 8.000 jobs at Sikorsky Aircraft until 2032.
According to Malloy, “Sikorsky will double its spending on in-state suppliers throughout Connecticut, strengthening our standing as an aerospace & manufacturing leader."
The deal will require legislative approval in a special session in the coming weeks.
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 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 in a press release. “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 in a press release. “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.”
Just last month, Lockheed Martin announced that it is laying off 150 employees from Sikorsky.
Lockheed Martin said the employees are being cut as a result of a reduction in force.
More information on the deal is expected to be released on Wednesday during a press conference at 3 p.m.
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