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Navy To Announce $14B Submarine Contract

U.S. Navy contract with General Dynamics Corp.'s Electric Boat unit and Northrop Grumman Corp is for eight more Virginia class submarines.

GROTON, Conn. (AP) -- U.S. Navy officials are set to announce a new $14 billion submarine contract with General Dynamics Corp.'s Electric Boat unit and Northrop Grumman Corp.

The announcement is planned Tuesday morning at Electric Boat's shipyard in Groton. Representatives of the two companies, labor union leaders and members of Connecticut and Rhode Island's congressional delegations are scheduled to attend.

The contract is for eight more Virginia class submarines. Connecticut Rep. Joe Courtney says it means that submarine production will double to two ships a year beginning in 2011 at EB and Northrop Grumman's shipyard in Newport News, Va.

Electric Boat employs more than 10,000 workers in Groton and North Kingstown, R.I., while Northrop Grumman has nearly 3,000 workers in Newport News.

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