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General Dynamics Electric Boat has engaged Austal USA in a AU$670 million contract to expand production capacity.
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The contract will enable Austal USA to expand production capacity at its US shipyard in support of the US Navy Submarine Industrial Base.
This contract award will fund Austal USA to enhance its existing infrastructure by designing, constructing and outfitting a new module fabrication and outfitting facility at its mobile shipyard to support the US Navy goal of delivering one Columbia Class and two Virginia Class submarines annually.
Construction of the new building will start this US autumn and be completed in 2026.
When fully operational, the building will support approximately 1,000 jobs and provide capability to fabricate, outfit, and transport submarine components.
The contract award is a testament to the growing partnership with General Dynamics Electric Boat and demonstrates its confidence in Austal USA as a valuable industry partner for these two important US Navy submarine programs, according to Austal Limited chief executive officer Paddy Gregg.
“General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia and Columbia Class submarines,” Gregg said.
“This growing partnership demonstrates confidence in Austal USA’s commitment to meet the needs of the US maritime industrial base and support the most critical needs of the US Navy.”
