Austal Limited announced that its US division, Austal USA, has been awarded a USD 450 million (approximately AUD 670 million) contract by General Dynamics Electric Boat.
This contract will enable Austal USA to enhance its production capacity to support the US Navy’s Submarine Industrial Base (SIB), the company said in an ASX announcement.
The contract will fund the design, construction, and outfitting of a new module fabrication and outfitting facility at Austal USA’s shipyard in Mobile, Alabama.
This facility will be crucial in achieving the US Navy’s goal of delivering one Columbia-class and two Virginia-class submarines annually.
Construction of the new building is set to begin this autumn, with completion expected by 2026.
The new facility will support approximately 1,000 jobs and significantly enhance Austal USA’s capacity to fabricate, outfit, and transport submarine components.
Austal Limited CEO, Paddy Gregg, highlighted the importance of this contract for the company and its partnership with General Dynamics Electric Boat.
“General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines,” he emphasised.
He added, “This growing partnership demonstrates confidence in Austal USA’s commitment to meet the needs of the U.S. maritime industrial base and support the most critical needs of the U.S. Navy.”
