Austal USA awarded US$450 million contract to expand submarine module production capacity
Austal USA Wins $450 Million Contract to Build New Facility for U.S. Navy Submarines
Austal USA, a part of Austal Limited (ASX: ASB), has been awarded a $450 million (about A$670 million) contract from General Dynamics Electric Boat. This major contract will help Austal USA expand its shipyard in Mobile, Alabama. The new facility will support the U.S. Navy’s Submarine Industrial Base (SIB), allowing the production of submarine parts.
The contract is part of a larger effort to help the U.S. Navy build one Columbia-class and two Virginia-class submarines each year. With this deal, Austal USA will build a new fabrication and outfitting building in its shipyard. Construction is expected to start this autumn and finish in 2026. Once completed, this facility will create around 1,000 new jobs. It will be used to build and outfit submarine parts and transport them where needed.
Austal Limited’s CEO, Paddy Gregg, said the contract shows the strong partnership between Austal USA and General Dynamics Electric Boat. He noted that this deal proves the confidence the company has in Austal USA to help with these important submarine programs.
“General Dynamics Electric Boat trusts Austal USA to make top-quality parts for Virginia- and Columbia-class submarines. This partnership shows their confidence in Austal USA’s ability to meet the needs of the U.S. Navy and the submarine industrial base,” said Mr. Gregg.
This contract is a big step forward for Austal USA, solidifying its role as a key player in supporting the U.S. Navy’s critical needs.
