General Dynamics Unit Secures $1B in Advance Navy Submarine Procurement Funds

General Dynamics‘ (NYSE: GD) Electric Boat subsidiary has booked a $1.1 billion contract modification from the U.S. Navy to build two Block V Virginia-class submarines.

The builder will use the funds to procure long-lead-time material and major components needed for the SSN 812 and SSN 813 construction projects, General Dynamics said Tuesday.

Work will occur in California, New Jersey, Pennsylvania, Illinois, Arizona, Connecticut, Maryland, Minnesota, South Carolina, Massachusetts and other locations through September 2033.

Electric Boat was awarded a $24.1B contract modification in December 2019 to manufacture nine Block V Virginia-class submarines for the service.

In March 2021, the business received a potential $2.42 billion contract modification to work on an additional submarine equipped with Virginia Payload Module.

The General Dynamics unit works with HII‘s (NYSE: HII) Newport News Shipbuilding division on the construction of the submarines.

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