Austal wins $34m US contract, responds to speculation

15/08/2019 - 14:36

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Austal has secured a $US23 million ($34 million) contract with the US Department of Defence, and addressed media reports of a possible Philippines expansion.

Austal wins $34m US contract, responds to speculation
David Singleton says Austal’s sustainment business is continuing to expand

Austal has secured a $US23 million ($34 million) contract with the US Department of Defence, and addressed media reports of a possible Philippines expansion.

Under the contract, Austal will be responsible for support activities such as dry docking on the USS Tulsa.

It secured a contract in January for similar works for the USS Manchester.

Both are littoral combat ships manufactured by Austal.

Chief executive David Singleton said Austal’s sustainment business was continuing to expand as more Austal-designed and constructed naval vessels were delivered into service.

Additionally, this morning The Australian reported that Austal is well positioned as a potential investor in the Philippines’ Subic Bay shipyards, after Chinese expressions of interest raised national security concerns.

In a statement to the ASX, Austal said it had made major investments in the Philippines and was continually assessing opportunities to further expand its operations if they created additional shareholder value.

“However, there is no certainty that any additional expansion opportunities will be either pursued or completed,” the company said.

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