Press Releases
GOV. MALLOY SIGNS HISTORIC AGREEMENT TO SECURE LONG-TERM COMMITMENT FROM UNITED TECHNOLOGIES CORP. TO CONNECTICUT
Construction of a New Pratt & Whitney Headquarters and other Upgrades Expected Next Spring
(EAST HARTFORD, CT) - Sitting behind a desk used by Charles Lindbergh and joined by hundreds of employees from Pratt & Whitney, Governor Dannel P. Malloy today held a signing ceremony for Public Act 14-2, an
agreement
under which United Technologies Corp. (UTC) will invest up to $500 million to upgrade and expand its aerospace research, development and manufacturing facilities over the next five years. During the same time period, UTC expects to invest up to $4 billion in research and other capital expenditures in the state. The agreement is expected to have an impact on more than 75,000 jobs in Connecticut.
"The importance of this deal begins with the thousands of
employees
at United Technologies and extends to the tens of thousands of people employed by or impacted by the work of companies in the supply chain," said Governor Malloy. "By getting this commitment from UTC, we are ensuring that Connecticut remains a vibrant part of the aerospace industry, an industry that provides good paying jobs with good benefits for so many. I'm proud of the work we've done so far, and look forward to seeing this agreement move on to the next phase - construction."
The company, which has been working on design and planning since the agreement was passed in April, also announced that it plans to begin construction on some of the facilities in the second quarter of 2015.
"This agreement ensures that Connecticut will remain central to our aerospace research, and home to the headquarters of Pratt & Whitney and Sikorsky for years to come," said Dr. J. Michael McQuade, UTC Senior Vice President, Science and Technology. "It means UTC's aerospace businesses will continue to perform cutting-edge research and development in Connecticut - providing exciting new opportunities for top engineering and science graduates from our state's colleges and universities. Our thousands of local suppliers and the Connecticut economy also will benefit from these significant investments in the future of aerospace in this state."
Under the terms of the agreement, the company will:
-
Construct a new Pratt & Whitney corporate headquarters, which it will keep in Connecticut for a minimum of 15 years
-
Construct a new Pratt & Whitney worldwide engineering center of excellence in Connecticut
-
Keep Sikorsky corporate headquarters in Connecticut for a minimum of 5 years
-
Create a customer training center at UTC Aerospace Systems (UTAS) in Windsor Locks
-
Build new labs and infrastructure at United Technologies Research Center (UTRC)
-
Invest in new research projects and capital investments at Pratt & Whitney, Sikorsky, UTAS and UTRC
The agreement will not require any borrowing or payments by the State of Connecticut, and is expected to create nearly 1,500 construction and other related jobs throughout the initial capital expansion.
The legislation will allow UTC to exchange approximately $20 million per year of previously earned but unused tax credits to finance the construction, up to a maximum of $400 million. The exchanged credits will be offset with tax reductions over a 14-year period, with the final amount based on the company's level of jobs, wages and investments.
If UTC fails to meet any of its obligations under the agreement, the benefits to the company would be either significantly reduced or eliminated. The agreement further incentivizes UTC by allowing for more exchanges as the company adds jobs in Connecticut and makes additional capital investments.
###
For Immediate Release: September 3, 2014
Twitter:
@GovMalloyOffice
Facebook:
Office of Governor Dannel P. Malloy
- Twitter: @GovMalloyOffice
- Facebook: Office of Governor Dannel P. Malloy