Posted on September 23, 2024
An Alabama shipyard won a $450M contract from submarine builder General Dynamics Electric Boat to expand its submarine construction business, according to a Friday regulatory filing.
Austal USA, the U.S. subsidiary of Australian shipbuilder Austal, won the award to build a modular fabrication and outfitting facility for modular components of submarines at its yard in Mobile.
“Construction of the new building will start this U.S. autumn and be complete in 2026. When fully operational, the building will support approximately 1,000 jobs and provide capability to fabricate, outfit, and transport submarine components,” reads the Sept. 13, notification to the Australian Stock Exchange.
“This contract award will fund Austal USA to enhance its existing infrastructure by designing, building 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.”
Over the last year, Austal USA’s Mobile-based shipyard has played host to General Dynamics submarine workers who are building components for Virginia-class submarines to be installed on attack boats under construction at Electric Boat’s shipyard at Groton, Conn.
“General Dynamics Electric Boat has recognized that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines. 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,” Austal Limited CEO Paddy Gregg said in the Friday statement to the Australian Stock Exchange.
Submarine construction outsourcing is a major initiative for the Navy as the service steps up its rate of production for Virginias to support the U.S. commitment to the Royal Australian Navy for nuclear submarines. The Program Executive Office for Submarines is managing a $17 billion pot of money to develop the submarine industrial base.
Originally founded to build aluminum ships, including the Independence-class Littoral Combat Ship (LCS-2) and the Spearhead-class Expeditionary Fast Transport (EPF-1) the yard as expanded. Over the last two years, the yard has shifted to steel production that includes Heritage-class Offshore Patrol Cutter for the Coast Guard and the Navy’s T-AGOS-25 ocean surveillance ship. The yard is also building the Navajo-class towing, salvage and rescue ship (T-ATS) as well as the submarine outsourcing work.
Austal USA broke ground in July on a $250 million, 192,000-square-foot facility final steel assembly facility to expand the capacity for steel ships.
