Austal USA, the American division of the shipbuilding group, plans to further expand its operations in Mobile, Alabama to keep up with the opportunities as it expands its work on U.S. government-related projects. The next project will focus on expanding production capacity at its Mobile shipyard in support of the U.S. Navy Submarine Industrial Base (SIB).
In a stock exchange filing, the company reported that its U.S. operation has been awarded a US$450 million contract by General Dynamics Electric Boat. The company reports it will use the contract to expand its submarine module production capacity.
Austal has already been working with General Dynamic Electric Boat as the U.S. Navy seeks to expand its submarine program. Employees of General Dynamics have been working alongside Austal in Mobile building components for the Virginia-class submarine. They are shipped to the Electric Boat yard in Groton, Connecticut for integration into the subs.
Reports indicate the U.S. Navy has $17 billion allocated to support the expansion of submarine shipbuilding capabilities. Outsourcing component manufacturing is one of the programs being pursued to support overall capacity growth.
According to Austal, the new contract will fund its efforts to enhance its existing infrastructure by designing, constructing, and outfitting a new module fabrication and outfitting facility at its Mobile shipyard to support the U.S. Navy goal of delivering one Columbia-class and two Virginia-class submarines annually. Construction of the new building will start this fall and be completed in 2026. When fully operational, the building will support approximately 1,000 jobs and provide the capability to fabricate, outfit, and transport submarine components.
“General Dynamics Electric Boat has recognized that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines,” said Paddy Gregg CEO of Austal. “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.”
Earlier this summer, Austal broke ground for another expansion in Mobile. It is a new final assembly facility that will include a new assembly building, waterfront improvements, and a new shiplift system. The project is scheduled to be complete and fully operational by the summer of 2026.
The construction of this new building and waterfront support area continues the expansion Austal USA began in March 2021 with the groundbreaking of the steel panel line. This latest expansion provides a new assembly bay that will enable the erection of large steel modules for Navy and Coast Guard ships, including the Offshore Patrol Cutter (OPC) and TAGOS-25 programs.
In 2020, the U.S. Department of Defense committed $50 million to Austal through the Defense Production Act. It was also designed to enhance the company’s capacity.
This year marks the 25th anniversary of the Mobile facility which Austal launched in 1999. The company points out that it occupies 180 acres on the eastern shore of the Mobile River. The additions mean that Austal will have more than 1.5 million square feet of indoor manufacturing space.
