Western Australian shipbuilder Austal Ltd was a stand-out performer among the companies that signed major trade deals during 2005.
Western Australian shipbuilder Austal Ltd was a stand-out performer among the companies that signed major trade deals during 2005.
The deal that received most attention was the $US223 million contract awarded to Bath Iron Works, the subsidiary of General Dynamics, Austal’s joint venture partner in the development of the first of two planed littoral combat ships (LCS) for the US Navy.
Austal will make $US110 million from the construction of the sea frame, which represents the company’s single largest-ever deal. This followed its announcement in May of a $US78.8 million contract to design the vessel.
The aluminium ships are being built at Austal’s US shipyard in Mobile, Alabama, with the official keel-laying ceremony to take place in early 2006.
The deal represented a new strategy for the company as it seeks to make further inroads into the lucrative defence vessel market. At the time, Austal executive chairman John Rothwell said the company’s first shipbuilding contract for the US Navy was of great significance for its size and was a solid reflection of Austal’s increasing reputation as a quality naval defence supplier.
Mr Rothwell said he was confident Austal’s unique trimaran hull design, as with the commercial variant, would prove to be a significant step forward for defence applications and would ultimately become the preferred choice for the LCS fleet.
During 2005 Austal also announced a number of contracts in the development of high-speed passenger and vehicle passenger ferries.
In December, a contract for two 88-metre high-speed vehicle-passenger catamarans, to be operated by Istanbul Deniz Otobusleri, was signed with the Istanbul Metropolitan Municipality, with the ferries scheduled for delivery in 2007.
Mr Rothwell said the repeat order confirmed Austal’s ability to market, design and construct ferries, as IDO was one of the world’s most experienced fast-ferry operators.
The company also confirmed contract funding for the order of two Auto Express, 107-metre vehicle-passenger ferries for Hawaii Superferry from its US shipyard. Completion of the first ferry will be in late 2006, while the second is due in the first half of 2009.
A contract for the design, construction and supply of six 16-metre aluminium monohull boats for the New South Wales water police was also awarded to Austal in 2005.
This order adds to the previous Austal delivery of two 22-metre and seven 16-metre patrol boats delivered in 2000. As with the previous vessels this order will be built over a period of 10 months.
