Sikorsky will build almost 200 CH-53K King Stallion helicopters, a heavy-lift helicopter for the U.S. Navy, until at least 2032. It also requires Sikorsky to increase its spending with local suppliers. 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 of the following categories: growing jobs; payroll spending; utilizing in-state suppliers; and deploying capital for machinery, equipment, and other long term investments.
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The Democrat, appearing with company officials, workers and legislators at Sikorsky’s facilities in Stratford, said legislative leaders understand the consequences of not approving the deal would be “rather dire”.
Lockheed appointed Schultz in November 2015 after the company finalized its $9 billion purchase of Sikorsky from United Technologies Corp.
Republicans are trying to include some of their legislative agenda as part of a special session next week for legislative approval of a tentative agreement that would keep Sikorsky in CT.
CH-53K is a heavy-lift helicopter created to provide maritime- and ground-based logistics support to the U.S. Marine Corps and has fly-by-wire flight controls, aircraft survivability equipment and ballistic protection tools. The incentives pledged by Malloy’s office include grants and tax exemptions. But it’s obvious that more is needed, if CT business is to thrive – and hire.
Sen. Len Fasano, R-North Haven, and minority leader of the Senate, said lawmakers have to “look at this as an investment”. Increased spending by Lockheed Martin in Connecticut’s supply chain alone would exceed the state’s incentives, the administration said.
That will be the pre-election decision for lawmakers: Do they sign off on the deal, or risk the loss of jobs?
The Governor and Lt. Governor met with state legislative leaders on Tuesday afternoon to brief them on the agreement and ask for their support.
“Connecticut was not the cheapest state”, he said. “I have to dive deeper into the numbers, (but) from what I’ve seen, I kinda like the deal”.
Stratford State Rep. Laura Hoydick is excited about the news, more jobs and stability in Stratford. “These companies are in every corner of our state”.
Sharkey said the deal would closely link the next generation of Sikorsky’s production to the state, with guarantees that other suppliers in the state also would benefit.
Fasano and Klarides are also trying to get support from Malloy for their request to extend the session by referencing comments he made to the Midstate Chamber of Commerce last week in Meriden, when he said he would have governed the economy differently if he knew in 2010 that the state’s recovery would be as sluggish as it has been.
Sikorsky President Dan Schultz said the deal is “a significant first step in the three-way partnership between Sikorsky, the state and Teamsters Local 1150”, which represents Sikorsky employees.
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Sikorsky faces a deadline of October 7 to confirm to the Navy where the King Stallion will be produced.
