Gov. Dannel Malloy and Lockheed Martin, parent company of Sikorsky, have reached a deal to keep the company's headquarters in Connecticut until 2032.
The agreement promises to retain and grow approximately 8,000 jobs at Sikorsky Aircraft in Stratford over the next 16 years, the governor said.
Under the deal, Sikorsky will build nearly 200 CH-53K King Stallion Helicopters in Connecticut for the United States Navy, after Lockheed Martin had considered a number of other states to produce the helicopter.
A special session for state legislative to approve the agreement will happen in the next few months, the governor's office said.
Lockheed Martin, under the agreement, will not only keep the headquarters in state and produce 8,000 jobs, but also, double its spending of $350 million a year with local Connecticut suppliers and increase its capital spending for machinery and equipment by 22 percent.
In exchange, the state will provide financial incentives totaling up to $220 million over the term of the agreement. The company will earn grants of up to $8.57 million on an annual basis, sales and use of taxes will be exempted up to $5.7 million per year and if Lockheed Martin exceeds the target level employment by 100 to 550 jobs in any given year, the company will be eligible for a performance incentive grant of up to $1.9 million.