Legislature Approves Sikorsky Long-Term Deal

From Connecticut General Assembly:

State Representative Lonnie Reed (D-Branford) is pleased to announce that the General Assembly has approved a deal for Sikorsky Aircraft to remain in Connecticut until at least 2032. Stratford has been home to Sikorsky since 1929.

"This agreement supports nearly 25,000 Connecticut jobs and at least 300 Connecticut businesses that supply Sikorsky,” said Rep. Reed. “Branford area companies include the Alcoa Howmet Corporation that serves the aerospace and power generation industries. And Alcoa Howmet also has plenty of downstream suppliers in our state. The Sikorsky agreement is great for Connecticut, great for Branford and will have a positive impact on our state's economic present and future."

The helicopter giant will be eligible for financial incentives in exchange for building nearly 200 CH-53K King Stallion helicopters, in Connecticut. The deal will:

• Build nearly 200 CH-53K King Stallion Helicopters – the largest maritime helicopter in the world - in Connecticut for the United States Navy until at least June 2032
• Keep the Sikorsky headquarters in the state and maintain its Stratford site 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
• Drive an estimated $69.2 billion between 2016 and 2032 into the Connecticut economy
• Allow Sikorsky to spend an estimated $21.1 billion on wages and benefits between 2016 and 2032
• Support approximately 24,601 jobs directly and indirectly
• Invest an estimated $744.8 million in contractor employment
• Inject an estimated $384.4 million in direct and indirect average annual tax revenue into the Connecticut economy, totaling $6.54 billion from 2016 and 2032

The incentives, worth up to $220 million, include exemption from sales and use taxes and annual grants during the term of the deal. In turn, Sikorsky and Lockheed will keep its HQ and primary manufacturing in the state, retain and expand its full-time staff, increase capital spending and give top priority to its Connecticut-based suppliers.

This deal was approved in a special session on Sept. 28 by the General Assembly.

Photo courtesy of Connecticut General Assembly