Austal USA Secures $450 Million Contract to Boost U.S. Navy Submarine Production

Australian shipbuilder Austal Limited has announced that its U.S. subsidiary, Austal USA, has been awarded a significant contract worth US$450 million by General Dynamics Electric Boat. The contract aims to expand Austal USA’s production capacity at its U.S. shipyard, supporting the U.S. Navy Submarine Industrial Base (SIB).

Electric Boat is the prime contractor for the Columbia- and Virginia-class submarine programs.

The funds will be used to enhance Austal USA’s existing infrastructure by designing, constructing, and outfitting a new module fabrication and outfitting facility at its Mobile shipyard. The expansion is in line with the U.S. Navy’s goal of delivering one Columbia-class and two Virginia-class submarines annually. Construction of the new facility is scheduled to begin this Fall and is expected to be completed by 2026.

Once fully operational, the new building will create approximately 1,000 jobs and provide the capability to fabricate, outfit, and transport submarine components.

“General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines,” said Austal Limited’s Chief Executive Officer, Paddy Gregg. “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.”

This contract further strengthens Austal USA’s position in the U.S. naval shipbuilding industry. It adds to the company’s existing portfolio of projects for various U.S. Navy and Coast Guard programs. These include the U.S. Coast Guard’s Heritage-class Offshore Patrol Cutter (OPC), and the U.S. Navy TAGOS-25 ocean surveillance ship, Landing Craft Utility (LCU) vessel, Spearhead-class Expeditionary Fast Transport (EPF), Navajo-class Towing, Salvage and Rescue ship (T-ATS), Expeditionary Medical Ship (EMS), Auxiliary Floating Dry Dock Medium (AFDM), and Independence-variant Littoral Combat Ship (LCS) programs.

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