The Navy has confirmed an agreement that it says will help provide stability for Navy shipbuilders in Maine and Mississippi.

The deal calls for Maine’s Bath Iron Works, a subsidiary of General Dynamics, to build all three of the stealthy DDG-1000 destroyers while Northrop Grumman’s Ingalls yard will build the first two upgraded Arleigh Burke destroyers when the program is restarted. A third would be built in Bath.

Northrop Grumman announced the deal on Wednesday. Lt. Clayton Doss, a Navy spokesman, said Monday the agreement provides “significant stability” for the industrial base and most affordably meets the Navy’s shipbuilding goals.

The Navy previously stated that the upgraded Arleigh Burke destroyers will come equipped with ballistic defense capabilities.