06/10/2021 - 15:30

Austal wins $200m US contract

06/10/2021 - 15:30

Bookmark

Upgrade your subscription to use this feature.

Henderson-based shipbuilder Austal has been contracted to build two steel vessels for the US Navy.

A rendering of the T-ATS vessel to be built for the US Navy. Photo: Austal

Henderson-based shipbuilder Austal has been contracted to build two steel vessels for the US Navy.

The contract is worth $US145 million ($A198.5 million) and involves building two towing, salvage, and rescue ships (T-ATS 11 and 12).

That includes options for three additional T-ATS ships which, if exercised, brings the total value of the contract to $US385 million ($A528.6 million).

Austal said its US division would use its new state-of-the-art enclosed steel production facility in Alabama – due to open in April next year – to complete work under the contract.

The new ships are expected to support the US Navy’s fleet operations and missions, which include spill response, humanitarian assistance, wide-area search, and surveillance.

Austal chief executive Paddy Gregg said the contract demonstrated the company’s new steel shipbuilding capabilities in the US, following on from the addition of steel shipbuilding in Australia.

“This is a great news for Austal USA as they enter a new era of steel shipbuilding in the United States, supporting the navy’s requirements for steel ships,” he said.

Austal closed up 3.2 per cent on the ASX today to trade at $1.93.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options