By Joseph De Avila

Connecticut Gov. Dannel Malloy announced details Wednesday of a $220 million deal with Lockheed Martin Corp. that would guarantee the company continues to produce helicopters in the state through June 2032.

The agreement ensures that Sikorsky Aircraft, which Lockheed bought for $9 billion in 2015, will keep its headquarters in Connecticut. Sikorsky employs more than 7,500 people in the state, and the deal provides a variety of incentives for the company to boost its hiring with a target of 8,032 positions by 2032.

Sikorsky would get up $120 million in grants from the state if it hits targets for the number of workers it employs, how much its payroll totals for those employees, how much it spends with Connecticut suppliers and how much it spends on capital expenditures in the state.

The company could also get up to $80 million in sales-and-use tax exemptions. It could also get up to $20 million in performance incentives, if the spending and hiring targets are exceeded

Dan Schultz, president of Sikorsky, said at a news conference Wednesday that the company had been giving serious thought about moving out of state even before it was bought by Lockheed.

Mr. Malloy, a Democrat, began meeting with Sikorsky executives to reach a deal in June. Without the agreement, "thousands of jobs at this facility and thousands of jobs at the broader supply chain would be lost, " Mr. Malloy said at the news conference.

Earlier this year, Mr. Malloy was forced to defend his economic-development policies after General Electric Co. announced it would leave the state for Boston.

The Democratic-controlled state Legislature still must approve the deal, during a special session scheduled for Sept. 28. The plan has solid backing with the Democratic leaders of the state House of Representatives and state Senate, along with the state representatives for Stratford, Conn., home to Sikorsky.

The company also needs to reach an agreement with Teamsters Local 1150, which represents its employees. Mr. Schultz said Sikorsky made a proposal to the union's leadership that would be subject to approval by rank-and-file members. He declined to disclose what was in that agreement. Officials with Teamsters Local 1150 didn't return a request for comment.

(END) Dow Jones Newswires

September 21, 2016 20:56 ET (00:56 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Lockheed Martin Charts.
Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Lockheed Martin Charts.