Austal Limited has announced that its US subsidiary, Austal USA, has been awarded a USD 152 million (approximately AUD 220 million) contract by the US Navy.
The contract aims to bolster the Navy’s infrastructure, supporting the annual delivery of one Columbia-class and two Virginia-class submarines, the company said in an ASX announcement.
The funds will enable Austal USA to participate as a limited partner in the United Submarine Alliance (USA) Qualified Opportunity Fund, a private initiative designed to expand the US submarine industrial base.
This effort includes upgrading facilities and ancillary infrastructure in and around Mobile, Alabama, where Austal USA operates.
Notably, the ownership of these facilities will remain with the USA Qualified Opportunity Fund.
The new contract is a significant addition to Austal USA’s submarine projects, following a previous USD 450 million contract with General Dynamics Electric Boat signed earlier this month.
“This contract from the U.S. Navy to expand production capacity further strengthens the role Austal has cemented in the U.S. submarine industrial base,” said Paddy Gregg, CEO of Austal Limited.
According to Austal, as Australia’s leading defence exporter and ASX-listed shipbuilder, the company’s global footprint continues to grow.
The company has contracted over 350 vessels for commercial and defence operators across 59 countries over the past 35 years.
