Austal wins $143m contract

Henderson-based shipbuilder manufacturer Austal has been awarded a $143 million contract for the construction of three vessels for the US Navy.

The local manufacturer announced that Austal USA won the contract from the United States Navy to construct three Landing Craft Utility (LCU) 1700 class vessels on Thursday morning. 

Austal said the vessels would have a heavy-lift capacity of 170 tonne payload, an upgrade to the navy’s existing fleet.

The LCU vessels are also expected to be fitted with hydraulically controlled bow and stern ramps, which can speed up the process for loading and unloading freight.

With the top speed anticipated to be 20 kilometres per hour, the vessel is designed to carry cargo of up to 3.5 metres high.  

Austal chief executive Paddy Gregg said the contract was symbolic of the ASX-listed company’s efforts to diversify the United States Navy’s scope of steel ships. 

“The LCU are an essential capability of the US Navy, and we’re proud to be contributing to this important shipbuilding program with up to 12 vessels to be constructed,” he said. 

“Austal USA continues to diversify its product portfolio, with production continuing on two towing, salvage and rescue ships and the 8,500 square metre auxiliary floating dry dock medium on the company’s state-of-the-art steel line.” 

The contract was settled after the shipbuilder booked a $13.8 million loss for FY23. 

Austal shares closed 3.24 per cent up to $1.91.