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September 16, 2011

BIW to get $2B for destroyers

The Navy and General Dynamics, parent company of Bath Iron Works, have signed a final contract for the shipyard to build the next two ships in the DDG 1000 destroyer program.

The contract awards BIW $1.8 billion to build DDG 1001 and DDG 1002, according to a press release from the company. BIW previously received some funding for advance work on the two ships, but the company and the Navy negotiated for months before reaching an agreement over details in July. In 2009, former Defense Secretary Robert gates announced a plan to have BIW build three ships in the new DDG 1000 destroyer program, and the first ship is about 50% complete, according to the Bangor Daily News. A target completion date for the first ship is 2014, while DDG 1001 is scheduled to be delivered in December 2015 and DDG 1002 in February 2018.

Last week, BIW informed 44 salaried workers in its engineering department they would be laid off effective Sept. 23, as design work for the DDG 1000 destroyer class winds down.

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