01/04/2016 - 09:54

Austal wins new US Navy deal

01/04/2016 - 09:54

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Local shipbuilder Austal has received an order from the US Navy for construction of an 11th littoral combat ship, with the deal worth up to $US564 million ($A735 million).

Austal wins new US Navy deal

Local shipbuilder Austal has received an order from the US Navy for construction of an 11th littoral combat ship, with the deal worth up to $US564 million ($A735 million).

The new combat ship will add to the US Navy’s $US3.5 billion order for 10 vessels to be built by Austal, which was received in 2010.

Austal said in a statement that construction of the new vessel had already been funded by the US Navy.

“Funding for (the new combat ship) has been confirmed by the US Navy as not to exceed the congressional cost cap of $US564 million, increasing Austal’s order book to about $3 billion,” Austal said.

As with the other 10 littoral combat ships, the new vessel will be built at Austal's shipyard in Alabama.

Austal chief executive Andrew Bellamy said the US Navy’s order showed confidence in the company’s ability to produce high-quality vessels.

“We are working hard to increase production efficiencies and reduce costs as the program matures and look forward to constructing the newly funded ship, which secures work at our US shipyard through to CY2021,” he said.

Three littoral combat ships have been delivered to the US Navy under the contract so far.

Austal shares were 2.2 per cent lower to $1.53 each at 10am.

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