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Austal awarded US $450 million Submarine module contract

Australian shipbuilder Austal Limited has announced that its U.S. arm, Austal USA, has been awarded a US $450 million (approx. A$670 million) contract by General Dynamics Electric Boat. 

The contract is set to enable Austal USA to expand production capacity at its US shipyard in support of the U.S. Navy Submarine Industrial Base (SIB).

“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,” said Gregg.

This contract award will fund Austal USA to enhance its existing infrastructure.

This involves 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 US 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.

Austal Limited CEO 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 U.S. Navy submarine programs.

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