29/10/2015 - 10:02

Austal wins $75m US Navy job

29/10/2015 - 10:02

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Shipbuilder Austal has built on its relationship with the US Navy, winning a $US53.5 million ($A75.3m) contract to procure materials for a new vessel.

An expeditionary fast transport vessel.

Shipbuilder Austal has built on its relationship with the US Navy, winning a $US53.5 million ($A75.3m) contract to procure materials for a new vessel.

Under the contract, Austal will procure materials including main propulsion engines, generators, water jets, main reduction gears and other long-lead time items for an 11th ‘expeditionary fast transport’ vessel, which the company expects it will build for the US Navy.

Chief executive Andrew Bellamy said the contract was an important step on the path to being awarded a new shipbuilding contract.

“It is timely that the US Navy has directed Austal to move forward with the procurement of the long lead items for the vessel,” he said.

“We can now anticipate finalisation of a shipbuilding contract for the new vessel in the coming months.

“Costs incurred will be reimbursed but no profit will be recognised prior to execution of the shipbuilding contract.”

Austal was trading 1.3 per cent higher to $2.23 each at 10am.

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