19/09/2018 - 14:07

Austal signs $1.6bn US Navy contract

19/09/2018 - 14:07

Bookmark

Save articles for future reference.

Months after being overlooked by the Australian government for local naval contracts, Henderson-based Austal has achieved more success in the US, securing a $1.6 billion contract to build two ships for the US Navy.

Austal signs $1.6bn US Navy contract
Austal has already built eight LCS vessels in the US. Photo: Austal

Months after being overlooked by the Australian government for local naval contracts, Henderson-based Austal has achieved more success in the US, securing a $1.6 billion contract to build two ships for the US Navy.

Under the contract, Austal will construct two Littoral Combat Ships over the next five years.

These ships will be 16th and 17th in the class, with Austal having already built eight LCSs.

The 127-metre vessel was originally designed in Henderson and been transferred to Austal USA, with the build undertaken in the company’s US shipyard in Alabama.

US-based Lockheed Martin has delivered the other vessels within the class.

“This latest order from US Navy is a tremendous endorsement of the Austal LCS platform and further evidence of the important role Austal plays in building the United States Navy,” chief executive David Singleton said

“We continue hearing positive feedback from the fleet commanders on how well our ships match their mission requirements as they operate globally.

“We remain dedicated to building these ships safely, timely and with the quality and craftsmanship that Austal has built our reputation on.”

Austal has handed over three LCS vessels to the US Navy this year.

Construction of LCS 32 is scheduled to begin in 2019, with delivery of LCS 34 expected to occur in mid fiscal year 2023.

Shares in Austal were flat at $1.92 each at 3.45pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options