Groton - Politicians praised the Navy's decision to award Electric Boat a $14 billion contract to build the next eight Virginia-class submarines Tuesday, calling it an economic stimulus that will help Connecticut, Rhode Island, Virginia and states across the country that build submarine parts.

Electric Boat, with facilities in Groton and North Kingstown, R.I., and the Northrop Grumman Newport News shipyard in Virginia will jointly build one ship per year in 2009 and 2010, and two ships per year from 2011 through 2013 - a production increase that starts a year earlier than the Navy had originally planned.

In these tough economic times, U.S. Sen. Chris Dodd said, "the importance of this industry to the people of this region, our state, and to our national security cannot be overstated."

The eighth ship to be purchased under this multi-year agreement is scheduled for delivery in 2019, which guarantees the shipyards work for over a decade.

EB President John P. Casey said the company will eventually need to hire about 1,000 more people at Quonset Point and the Groton workforce will be stable once submarine production increases.

"It's a great outlook and the most stability I've seen in my tenure here," Casey said.

Kenneth DelaCruz, president of the Metal Trades Council, called the contract an "early Christmas present." His union represents about 2,400 shipyard employees.

"This is our future," DelaCruz said.

Rear Adm. William Hunter Hilarides, program executive officer for submarines, U.S. Sen. Joe Lieberman, U.S. Rep. Joe Courtney and members of the Rhode Island delegation were also in attendance.