Shipbuilder, Austal (ASX:ASB) has been awarded a new A$369 million contract by the U.S. Navy.
The contract extends the Expeditionary Fast Transport Ships (EPF) program to 2022, with construction of two additional ships to commence in late 2019.
The 14-ship, EPF program has to date been worth over US$2 billion and underscores the ability of Austal USA to build highly capable ships at an affordable cost.
Austal says the extension of this program to 14 vessels is a result of the versatility of the EPF platform to perform an increasing range of roles for the U.S. Navy combined with the confidence our customer has in it.
Shares in Austal (ASX:ASB) are trading 1.11 per cent lower at $2.23.