Austal Limited (ASX:ASB) Contract Announcement

Austal Limited (ASX:ASB) has announced that its subsidiary, Austal USA, has secured a significant US$450 million contract from General Dynamics Electric Boat. The contract aims to expand production capacity at Austal USA's shipyard in support of the U.S. Navy Submarine Industrial Base (SIB). The contract will facilitate the design, construction, and outfitting of a new module fabrication and outfitting facility at its Mobile shipyard, with construction set to commence in the upcoming US autumn and completion expected in 2026. Once operational, the facility is projected to create approximately 1,000 jobs and bolster the capability to fabricate, outfit, and transport submarine components.

Austal Limited CEO's Statement on Contract Award

Austal Limited's Chief Executive Officer, Paddy Gregg, expressed his satisfaction with the contract award, emphasizing the growing partnership with General Dynamics Electric Boat and the confidence demonstrated in Austal USA as a valuable industry partner for the U.S. Navy submarine programs. Mr. Gregg highlighted the recognition of Austal USA's ability to deliver high-quality components for Virginia- and Columbia-class submarines, underscoring the commitment to meet the critical needs of the U.S. maritime industrial base and the U.S. Navy.

Summary of Austal Limited's Contract Announcement

Austal Limited (ASX:ASB) has secured a substantial US$450 million contract through its subsidiary, Austal USA, to expand submarine module production capacity in support of the U.S. Navy Submarine Industrial Base. The contract, awarded by General Dynamics Electric Boat, will facilitate the construction of a new facility at Austal USA's Mobile shipyard, aiming to bolster the production of components for the U.S. Navy's Columbia-class and Virginia-class submarines. Upon completion, the facility is expected to generate around 1,000 jobs. Austal Limited's CEO, Paddy Gregg, highlighted the significance of the partnership with General Dynamics Electric Boat and the confidence in Austal USA's capabilities, reaffirming the commitment to meet the critical needs of the U.S. maritime industrial base and the U.S. Navy.