Navy shipbuilder HII announced today its plans to acquire “substantially all of the assets” of South Carolina-based metal fabricator W International, with intentions to commence submarine module construction at the new location starting next year.
HII stated that the deal is anticipated to close in the fourth quarter of 2024, pending regulatory approvals, although no financial details have been disclosed.
The facilities are located in Charleston, SC, approximately 400 miles south of HII’s Newport News Shipbuilding, which manufactures US Navy aircraft carriers and collaborates with General Dynamics Electric Boat to produce Virginia and Columbia-class submarines.
“HII is committed to increasing build rates for our Navy customer, and this investment in capacity alongside the Navy will help us achieve that,” said HII President and CEO Chris Kastner in a statement. “This allows us to efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent task of shipbuilding, creating a unique opportunity to accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”
The acquisition includes 480,000 square feet of manufacturing space on a 45-acre site, along with access to a barge and rail lines for transporting completed modules back to either Newport News or General Dynamics Electric Boat. HII indicated that it plans to offer employment to “substantially all” of W International’s current workforce.
“Submarines will be the first priority. That’s where we’re starting,” remarked Jennifer Boykin, Newport News Shipbuilding’s outgoing president, during a press briefing today. “However, we also recognize the opportunity to include aircraft carrier unit builds due to the size of the facility.”
This acquisition occurs against the backdrop of various initiatives by the Navy and industry to strengthen the submarine industrial base. Over the past year, the Navy has collaborated with the Texas-based non-profit BlueForge Alliance to recruit additional shipyard workers, initially aiming to add 100,000 workers over the next decade. Recent discussions at an event hosted by the Center for Maritime Security revealed that this goal has now been increased to approximately 140,000 workers.
Additionally, the Navy recently finalized a deal with a private investment firm and shipbuilder Austal USA to acquire and develop a piece of land in Mobile, Alabama, designated for submarine module construction. Austal has recently emerged as a more active participant in the submarine industrial base, securing contracts from General Dynamics Electric Boat and expanding its facilities to support these initiatives.
