General Dynamics Secures $987 Million for Submarine Production
General Dynamics Electric Boat Receives Major Contract Modification
General Dynamics Electric Boat, a crucial segment of General Dynamics (NYSE: GD), has announced a significant achievement. They have secured a contract modification valued at $987 million, aimed at enhancing their submarine production capabilities. This contract focuses on providing essential components, supporting yard operations, and advancing supplier development. Such enhancements are a vital part of ongoing initiatives within the U.S. Department of Defense.
Investment in Submarine Production
This strategic investment is designed to fund critical shipyard operations and bolster the supply chain necessary to meet the expected demand for submarines in the coming years. Mark Rayha, the president of General Dynamics Electric Boat, emphasized the importance of this modification. He expressed gratitude towards the Navy and Congress for their ongoing support, which is essential as they work toward accelerating delivery timelines for submarines.
Key Areas of Work
The work associated with this contract will primarily take place in several key locations. Significant operations will be conducted in Groton, Connecticut, where around 70% of the work will be executed. Newport News, Virginia, will contribute 15% to the effort, alongside the Quonset Point area in Rhode Island, which will account for the remaining 15%. This collaborative effort showcases the diverse capabilities spread across these regions.
Future Expectations
General Dynamics Electric Boat is committed to completing the work on this contract by 2031. Through this effort, the company aims to fulfill the Navy's critical requirements while also addressing its future demands for advanced submarine technology.
About General Dynamics Electric Boat
General Dynamics Electric Boat plays a pivotal role in national defense, specializing in the design, construction, repair, and modernization of nuclear submarines for the U.S. Navy. The company is proud to call Groton, Connecticut its home and supports a workforce of over 24,000 dedicated professionals. This extensive team underlines the firm’s commitment to excellence in submarine operations.
General Dynamics Overview
Operating on a global scale, General Dynamics, headquartered in Reston, Virginia, encompasses a wide array of products and services across several sectors. With over 110,000 employees, the company’s portfolio includes business aviation, ship construction and repair, land combat vehicles, and advanced technology solutions. General Dynamics reported impressive revenue figures of $47.7 billion in 2024, demonstrating robust growth and a strong market presence.
Frequently Asked Questions
What is the value of the contract received by General Dynamics Electric Boat?
The contract received is valued at $987 million, focused on enhancing submarine production capabilities.
What does the contract modification support?
The modification supports critical components development and supplier enhancements essential for submarine production.
Where will the work for this contract be performed?
The work will primarily be performed in Groton, Connecticut, Newport News, Virginia, and Quonset Point, Rhode Island.
What is the expected completion date for the contract?
The expected completion date for the contract is by the year 2031.
How many people does General Dynamics Electric Boat employ?
General Dynamics Electric Boat employs over 24,000 individuals dedicated to submarine production and support operations.
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