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Updated: June 29, 2020

Navy awards $132M to BIW for shipyard improvements, destroyer supplying

COURTESY / BATH IRON WORKS Bath Iron Works on Friday was awarded a $132 million contract modification to improve performance on Arleigh Burke-class guided missile destroyers (DDG 51). An Arleigh Burke-class destroyer is seen here under construction at the Bath yard.

Bath Iron Works on Friday was awarded a $132 million contract modification to fund improvements to the shipyard and its function as a supplier base for the Navy's Arleigh Burke-class (DDG 51) guided missile destroyers.  

The award provides $70 million to pay for shipyard process and infrastructure improvements, according to a news release. 

The contract also calls for spending $62 million on capital improvements to support the DDG 51 supplier base and to identify needs within those operations.

This investment follows over $150 million invested since 2018 in Bath Iron Works’ facilities and equipment by General Dynamics (NYSE: GD), the yard's owner.

In its release, BIW recognized U.S. Sen. Susan Collins, R-Maine, a senior member of the Appropriations Committee and the Defense Appropriations Subcommittee, who helped secure the funding with the support of U.S. Sen. Angus King, I-Maine, a member of the Senate Armed Services Committee.  

In a separate statement, Collins said the funding will make infrastructure improvements at the yard, enhance the jobs of BIW’s employees and create future opportunities for growth.  

“I hope that Local S6 and management will return to the bargaining table quickly to resolve their differences so that BIW can continue to deliver much-needed ships to our Navy,” she added.

Bath Iron Works’ largest labor union, International Association of Machinists & Aerospace Workers Local S6, went on strike a week ago. The union represents about 4,300 of BIW’s 6,800 employees.

Despite the strike, BIW has delivered 22 of the 30 machines needed for the Puritan Medical Products expansion in Pittsfield, and officials said the machinists union strike won't affect completion of the remaining eight.

The Burke-class destroyers are 500-foot warships are built by BIW, which launched the first one in 1989, and Huntington Ingalls Industries in Pascagoula, Miss.

There are currently over 60 Burke-class destroyers in service. BIW has produced 37 of them, the most recent of which launched last year.

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