Austal scores $450 million deal to expand submarine module production capacity

Austal USA has been awarded a $450 million (approx. A$670 million) contract by General Dynamics Electric Boat to expand production capacity at its US shipyard in support of the US Navy’s Submarine Industrial Base (SIB).

As disclosed, 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 complete in 2026. 

Austal Limited Chief Executive Officer Paddy Gregg noted this contract award is a testament to the growing partnership with General Dynamic Electric Boat and demonstrates its confidence in Austal USA as a valuable industry partner for these two important US Navy submarine programs.

“General Dynamics Electric Boat has recognised 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,” he added.

To remind, the US Navy recently commissioned the fast-attack Virginia-class submarine USS New Jersey (SSN 796) in a traditional ceremony held at Naval Weapons Station Earle in Middletown, New Jersey.