Austal locks in $13m US contract

The US arm of Henderson-based shipbuilder Austal has secured a $US10.2 million ($13 million) for engineering and design work with the US defence department.

The contract is part of a previously awarded order agreement, with Austal set to provide engineering and management services for the planning and design of a littoral combat ship.

The work will be conducted across Austal’s Mobile, Alabama, San Diego and California facilities.

Austal has six ships currently under construction and a further two set to commence in the next year in the US.

“The LCS has a significant economic footprint in the United States supporting tens of thousands of jobs through the contributions of more than 900 local suppliers in 41 states involved in the program,” Austal chief executive David Singleton said.

The news comes after reports that the federal government has appointed WorleyParsons chairman John Grill to act as a mediator between Austal and German shipbuilder Lurssen over the $3.6 billion offshore patrol boat contract.

Shares in Austal were up 0.3 per cent at $1.84 at 230pm AEDT.