Austal expands in US

Austal has struck an agreement to buy additional land near its shipyard in the US and foreshadowed plans to expand its shipbuilding and repair operations.

Today’s announcement comes two months after Austal said it planned to invest $US100 million expanding its US operations, with half that money coming from the US government Department of Defense.

The government funding was designed to boost US domestic production of steel shipbuilding capability.

The Henderson-based company intends to buy six hectares of waterfront land, buildings and assets including an existing dry dock on the riverfront in Mobile, Alabama.

The acquisition price is under $US10 million and will be funded from cash holdings. 

The land is across the Mobile River from Austal’s 66ha manufacturing facility and headquarters.

Austal is one of the largest shipbuilders in the US and a major supplier to US defence agencies.

It said the dry dock was capable of launching not only its current range of aluminium vessels but heavier steel ships in the future.

The company said the acquisition would support its new construction and service strategy by securing launch and deep water berthing capability in support of future new construction efforts including steel ships, while also giving it increased service and repair capacity in Mobile.