Naval shipbuilder awarded US$540 million contract to expand submarine module production capacity

Austal USA has been awarded a US$450 million contract by General Dynamics Electric Boat (GDEB) to enable the expansion of production capacity at Austal's Alabama facilities in support of the US Navy Submarine Industrial Base (SIB).

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's goal of delivering one Columbia-class and two Virginia-class submarines annually.

Construction of the new building will start this autumn and will be completed by 2026. When fully operational, the building will provide Austal USA with the necessary capability to fabricate, outfit, and transport submarine components.

Austal USA is already engaged in structural assembly fabrication for the Virginia-class boats. This is in fulfilment of a time and material (T&M) contract awarded to Austal by GDEB in January of last year.

GDEB is the prime contracting agency for the manufacture of submarines for the US Navy.