The purchase two years ago of General Electric Co.'s marine-gear business in Lynn, Mass., which included the gear designs for the Arleigh Burke, made it possible for Philadelphia Gear to win the latest contract.
"It took two years of very hard work," Rapp said. "It's very humbling, I have to tell you, for the Navy to put this trust in us."
The Navy had planned to stop buying Arleigh Burke ships, which use the Aegis weapons made at Lockheed Martin Corp.'s facility in Moorestown, but decided last year to buy more, upgraded versions of the warship, Rapp said.
The upgrades, which include more electronics and hybrid power generation, will boost the cost of the ships to $2 billion from $1.2 billion each. The Arleigh Burke destroyers have been a mainstay of the Navy fleet since the first one went into service in 1991.
For Philadelphia Gear, which in 2001 closed its landmark King of Prussia factory - where a Home Depot now stands - to focus more on aftermarket services, the Navy deal represents a big boost to the manufacturing side of its operations.
Most of the work will be done at a new Philadelphia Gear facility in Santa Fe Springs, Calif., where the company is relocating its California operations. Total investment there is expected to be $5 million to $10 million.
Philadelphia Gear employs 211 people, including 35 in King of Prussia. It expects to add 15 to 20 to its workforce because of the Navy contract, but only a few here, Rapp said.
Contact staff writer Harold Brubaker at 215-854-4651 or hbrubaker@phillynews.com.
