General Dynamics Electric Boat has awarded a $450 million contract to Austal USA to expand infrastructure at its shipyard in Mobile, Alabama, aimed at bolstering production capacities for Virginia- and Columbia-class submarines, the company announced today.
The contract encompasses the design and construction of a new module fabrication and outfitting facility, with construction scheduled to begin this fall and completion expected by 2026. Once operational, the facility is anticipated to generate around 1,000 new jobs at the shipyard, as stated by Austal.
“This contract award further solidifies Austal USA’s strong industrial partnership with General Dynamics Electric Boat to increase capacity in the submarine industrial base,” commented Austal USA President Michelle Kruger. A spokesperson from GD Electric Boat declined to provide additional comments when approached by Breaking Defense.
In early 2023, Austal, in collaboration with both the Navy and Electric Boat, undertook the task of producing certain modules for the Virginia- and Columbia-class submarines to alleviate the workload on the submarine prime contractor.
The new facility will span 369,000 square feet across eight and a half acres, enhancing the production capabilities of the shipyard.
“This award signifies another important milestone in the transformation of our Mobile facility to meet the diverse requirements of our Navy and Coast Guard customers,” said Larry Ryder, Austal USA vice president of business development and external affairs. “Since we broke ground for our steel panel line in 2021, we have consistently focused on expanding the capacity and capabilities of our Mobile shipyard, leveraging our highly skilled workforce.”
This contract announcement follows the Navy’s recent establishment of a separate agreement with a private investment entity, the United Submarine Alliance Qualified Opportunity Fund LP, intended to strengthen the submarine industrial base. This deal included a $152 million investment from the Navy through Austal for the acquisition of the 355-acre Alabama Shipyard, located adjacent to Austal’s existing facilities.
