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Sea Trials at sunset in the Atlantic ocean of a new Virginia class submarine

The Virginia-class attack submarine Pre-Commissioning Unit Mississippi (SSN 782) conducts alpha trials in the Atlantic Ocean. (U.S. Navy photo)

U.S. Navy Partners with Private Equity to Revitalize Alabama Shipyard

Mike Schuler
Total Views: 3396
September 23, 2024

The U.S. Navy has launched a groundbreaking public-private partnership to strengthen American maritime dominance and national security. The initiative aims to enhance the Submarine Industrial Base (SIB) and support the Navy’s submarine production requirements.

As part of the initiative, the private investment firm United Submarine Alliance Qualified Opportunity Fund (USA Fund) has acquired the assets of Alabama Shipyard in Mobile, Alabama. The 355-acre site, now renamed Mobile Naval Yard, will undergo extensive modernization to support the production of Columbia and Virginia Class nuclear submarines.

This partnership is part of Navy Secretary Carlos Del Toro’s Maritime Statecraft program, which aims to rebuild the submarine manufacturing base that has shrunk to just one-third of its capacity from 30 years ago. The initiative will play a key role in nearly doubling submarine production, requiring an additional 3.5 to 4.5 million submarine module production and outfitting hours annually.

“This announcement answers my call for investment into small-to-medium size shipyards, both active and dormant, that were previously the backbone of our Nation’s maritime power,” said Secretary of Navy Carlos del Toro.

CapZone Impact Investments LLC (CZII), the investment management firm behind the USA Fund, sees this as an opportunity to drive both national security and economic growth. Al Puchala, CEO of CapZone, explained, “This Navy initiative is a model for how public-private partnerships can address critical infrastructure needs in the defense and national security sectors.”

Originally established in 1916, the Alabama Shipyard facility played a vital role during World War II, constructing and maintaining vessels for the U.S. Navy. The shipyard was revived in 2019 under new ownership and now offers specialized services in maintenance, repair, overhaul, conversion, and shipbreaking for both commercial and government clients. Its three full-service piers house five deep-water berths, capable of accommodating some of the world’s largest operational vessels.

In a related development, Austal USA has been awarded a $450 million contract to expand its production capacity in support of the U.S. Navy submarine industrial base at its Mobile, Alabama shipyard, located adjacent to the Mobile Naval Yard site. The expansion will create approximately 1,000 new jobs at Austal USA and provide the capability to fabricate, outfit, and transport submarine components.

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