Austal wins second US submarine build contract

Shipbuilder Austal has been awarded a second major contract in the United States to prepare itself for the construction of submarine modules and components to feed into the US Navy nuclear submarine construction programme.

Austal USA has been awarded a $220 million (US$152 million) contract by the U.S. Navy to invest in infrastructure that supports the Navy’s goal of annually delivering one Columbia-class (CLB) and two Virginia-class (VCS) submarines.

The contract provides funding for Austal USA to invest as a partner in the United Submarine Alliance (USA) Qualified Opportunity Fund, a private investment fund with the objective of supporting expansion of the production capacity of the U.S. submarine industrial base (SIB).

This will be achieved through enhancing ancillary infrastructure and facilities adjacent to Austal USA’s facilities in Mobile, Alabama (pictured) and in facilities nearby.

Ownership of facilities acquired by the Fund will remain with the USA Qualified Opportunity Fund in which Austal USA is a limited partner but which is not part of the Austal Group.

This contract is separate and in addition to the $670 million contract signed with GeneralDynamics Electric Boat earlier this month for nuclear submarine module construction.

That contract will enable Austal USA to expand production capacity at its US shipyard in Mobile as part of the U.S. Navy Submarine Industrial Base (SIB).

Austal CEO Paddy Gregg said: “This contract from the US Navy to expand production capacity further strengthens the role Austal has cemented in the US submarine industrial base.”

Further reading:
Austal awarded $670m contract for n-submarine module construction
US submarine build contracts should end talk of selling off Austal

Picture: Austal/Mobile, Alabama shipyard