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    Saturday, May 04, 2024

    Malloy signs bill keeping Sikorsky in state

    A deal conceived to keep Sikorsky Aircraft in Stratford until 2032 was made official Monday.

    In an early afternoon visit to Housatonic Community College’s advance manufacturing program, Gov. Dannel P. Malloy signed the bill that gives the helicopter manufacturer $220 million in state subsidies to maintain its headquarters in the state.

    The action comes almost six weeks to the day after it was announced that Sikorsky, which had been considering relocating, had reached a deal with state officials to remain in Connecticut for the next 16 years.

    Under the deal, the Lockheed Martin subsidiary has also agreed to build 200 CH-53K King Stallion helicopters for the U.S. Navy in Connecticut, retain and grow 8,000 jobs in the state and double its annual spending with in-state suppliers.

    “Connecticut is known internationally as a worldwide aerospace leader, and that is because of the strong number of aerospace manufacturers who call our state home in addition to the talented and robust workforce that provide these companies with a skilled aptitude that is second to none,” Malloy said in a statement. “This is a bold, forward-thinking agreement that will not only impact thousands of jobs directly at Sikorsky’s worldwide headquarters, but also will have an impact on the hundreds of small businesses who employ thousands more throughout the state and serve as suppliers to the company.”

    The legislation was passed by the General Assembly in September.

    For its part of the deal, state officials agreed to give the company annual grants of up to $8.57 million for meeting benchmarks and up to $5.7 million a year in tax exemptions. The company would also be eligible for up to $20 million in grants if it exceeds the target levels of employment in any year of the agreement.

    Malloy said in September that if the state had allowed Sikorsky to leave, it would have missed out on $1 billion in capital expenses, $11 billion in payroll and $6 billion in expenditures with state suppliers over the next 16 years.

    He called the potential consequences of losing the Stratford employer “rather dire.”

    Roughly a week after the announcement, lawmakers approved the deal. And, more recently, Sikorsky union workers approved a new contract that has been called necessary to make the company’s decision financially feasible.

    The union’s new contract cuts hourly rates by 25 percent for new employees who join the company after July 1, 2017. Current employees are now eligible to receive a $1,500 ratification bonus for approving the contract.

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