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June 7, 2006

Electric Boat chief upbeat on sub deal

ALEXANDRIA, Va. -- The president of Electric Boat says he's confident his firm can cut submarine construction costs enough to convince the Navy to double production to two submarines per year.

"I'm here to tell you today that we can do that," Electric Boat President John Casey said at a briefing with reporters outside Washington, D.C., earlier today.

Electric Boat, a division of General Dynamics Corp., is working with the state's congressional delegation to lobby for increased sub production, which could help save jobs at the company's Groton, Conn., and Quonset Point, R.I., facilities. Planned layoffs were announced earlier this year and officials said between 1,900 and 2,400 jobs could be in jeopardy.

The Navy wants Electric Boat to reduce costs from about $2.4 billion to about $2 billion for each sub.

"We have every intent of achieving that challenge," Casey said.

Electric Boat wants the Navy to double sub production by 2009. The Navy has set 2012 as a target date.

-- The Associated Press

Posted by Steve Peoples  at 2:50 PM | Permalink

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