Austal (ASX:ASB) seals $4.7 million deal with US Navy

Company News

by Michael Luu

Naval shipwright Austal (ASX:ASB) has sealed a $4.7 million deal with the US Navy to construct a Navajo-class steel vessel for the world’s second largest naval fleet.

Under the contract, the ASX-listed shipbuilder will design, construct and provide support services for the 80-metre monohull vessel to be used for towing, salvage and rescue purposes.

Austal has formed partnerships with many international defence forces and government-level customers. The $805 million shipyard operator has been trusted as a ship-building contractor of the Australian Border Force, Royal Australian Navy, Royal Navy of Oman and the US Navy.

The deal is the first that Austal has secured with the US military to manufacture a steel ship. The milestone is the outcome of a $100 million revamp of Austal’s manufacturing facility in Alabama, which also received financial assistance from the US government.

Austal’s CEO Paddy Gregg described the significance of the deal, “Austal USA is now well on the path to delivering steel ships for the United States Navy and we couldn’t be prouder of the hardworking team in Mobile, Alabama”

The shipyard upgrade has enhanced the company’s capacity and proficiency in delivering steel ship products, making the vessel-building factory the fifth largest shipyard in the US. 

Shares in Austal (ASX:ASB) are trading 3.8 per cent higher at $2.32

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