Austal to build two vessels for US Navy

Henderson-based shipbuilder Austal will build two more vessels, valued at $225 million, for the US Navy after it exercised contract options as part of an existing $1.8 billion program.

Austal will now build two more Joint High Speed Vessels for the US Navy, which has previously provided funding to Austal for long lead-time material.

The vessels will be constructed at Austal's US facility located in Alabama.

Austal was selected as prime contractor for the JHSV program in late 2008, which included the construction of the first vessel and options for nine more, to be exercised between 2008/09 and 2012/13.

"By exercising Options 2 and 3, the US Navy has signalled its support of this important and significant multi-vessel program," Austal managing director Bob Browing said.

"The JHSV program could serve to extend the United States' ability to provide humanitarian relief globally and Austal is pleased to be able to contribute to this effort through the speedy delivery of this highly flexible, low-cost vessel."

Austal is also building a second Littoral Combat Ship for the US Navy, which has expressed a commitment to a 55-vessel LCS program.

Shares in Austal climbed three cents to $2.43 at 12:29 AEDT.