Derrick Henry
Austal USA has received a $450 million contract from General Dynamics Electric Boat to expand its U.S. shipyard’s production capacity and support the U.S. Navy’s submarine industrial base.
Under the agreement, a new module fabrication and outfitting facility will be built in Mobile, Alabama, to support the sea service’s project of producing a Columbia-class and two Virginia-class submarines every year, Austal said Monday.
The company will start constructing the new structure in late September, with completion set for 2026.
The new facility will be designed to fabricate, outfit and transport submarine components when it becomes operational.
Its activities are also projected to generate approximately 1,000 jobs.
In a statement, Austal CEO Paddy Gregg said the contract award underscores confidence in Austal USA as an important industry partner for the Navy’s 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,” Gregg noted.
