Austal USA Awarded $450 Million to Boost Capacity for Submarine Module Construction

Austal USA has been awarded a $450 million contract by General Dynamics Electric Boat to expand production capacity at its Mobile, Ala. shipyard in support of the U.S. Navy submarine industrial base (SIB).

In 2022, Austal USA and Electric Boat, supported by the U.S. Navy, formed a strategic partnership to expand the production capacity of the SIB. As part of the partnership, Austal USA is constructing and outfitting Command and Control Systems Modules (CCSM) and Electronic Deck Modules (EDM) for the Virginia- and Columbia-class programs.

The latest contract award will fund Austal USA to enhance its existing infrastructure by designing, constructing and outfitting a new module fabrication and outfitting facility to support the U.S. Navy goal of delivering one Columbia-class and two Virginia-class submarines annually.

Austal USA said construction of the new building will start this 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.

Paddy Gregg, CEO of Austal USA's Australian parent Austal, said the 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.

“General Dynamics Electric Boat has recognized 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,” Gregg said.