GROTON, Conn. – General Dynamics Corp.’s Electric Boat yesterday announced the signing of a long-awaited Navy contract for eight Virginia-class submarines. The $14 billion deal is the largest sub contract in U.S. history.
The deal will help the company keep employment at its Quonset Point facility in North Kingstown steady next year at about 2,000, Electric Boat President John P. Casey told reporters this month at the division’s annual meeting. (READ MORE) EB’s Quonset staff is likely to grow to more than 2,500 over the next five years, Casey added.
The Virginia-class submarines will be built for less than $2 billion each, which means Electric Boat will be able to deliver two per year starting in 2012, the company said. (READ MORE) EB will probably face some “challenges” between now and then, Casey said.
For instance, to create a level work load, Quonset management will have to begin bringing in parts of the to-be-built boats before 2011 – to bridge the expected gap in work – “and I suspect we’ll be able to do that,” he said.
“We have about a year to get ourselves squared away,” Casey said. “We’ve been able to avoid these cycles in the last five years, as we’ve predicted them, and certainly there won’t be one in this coming year.”
General Dynamics Corp. (NYSE: GD), based in Falls Church, Va., is the largest maker of armored vehicles for the U.S. military. It is the parent of Groton, Conn.-based Electric Boat. For additional information, visit www.GeneralDynamics.com or www.gdeb.com.
