Australian shipbuilder Austal Limited has announced that its U.S. arm, Austal USA, has been awarded a US$152 million contract by the U.S. Navy to develop submarine infrastructure.
The infrastructure is set to support the Navy’s goal of annually delivering one Columbia-class (CLB) and two Virginia-class (VCS) submarines.
The contract provides funding for Austal USA to invest as a partner in the United Submarine Alliance (USA) Qualified Opportunity Fund.
This is a private investment fund with the objective of supporting expansion of the production capacity of the U.S. submarine industrial base (SIB) through enhancing ancillary infrastructure and facilities adjacent to Austal USA’s facilities and around the Mobile area.
“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.
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.
This contract is separate and in addition to the US$450 million contract signed with General Dynamics Electric Boat just last week.