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Austal USA has been awarded a US$152 million contract to support the US Navy's goal of annually delivering one Columbia-class and two Virginia-class submarines.
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The contract announced by Austal, worth around $220 million AUD, is expected to deliver new investment into infrastructure to support the US Navy.
This contract is separate and in addition to the US$450 million contract signed with General Dynamics Electric Boat announced on 16 September this year.
“This contract from the US Navy to expand production capacity further strengthens the role Austal has cemented in the US submarine industrial base,” said Austal CEO Paddy Gregg.
The contract provides funding for Austal USA to invest as a partner in the United Submarine Alliance Qualified Opportunity Fund, a private investment fund with the objective of supporting expansion of the production capacity of the US submarine industrial base through enhancing ancillary infrastructure and facilities adjacent to Austal USA’s facilities and around the Mobile area.
Ownership of facilities acquired by the fund will remain with the USA Qualified Opportunity Fund in which Austal USA is a limited partner, but which is not part of the Austal Group.
Earlier this year, Austal USA secured a contract modification for the construction of two additional Landing Craft Utility (LCU) 1700 Class vessels for the United States Navy.
Austal confirmed it had been awarded a $84,455,364 fixed-priced incentive (firm target) contract modification, according to a statement published on 5 August.
The initial contract was for the construction of three Landing Craft Utility (LCU) 1700 Class vessels, with options for an additional nine vessels, in September 2023.
The potential value of the contract for up to 12 vessels is $587.6 million. This contract modification brings the total number of LCU currently scheduled or under construction at Austal USA to five.
