Austal USA Shipbuilders Scores Major Navy Ship Contract

MOBILE, Ala. – (June 26, 2017) – Business Council of Alabama member Austal USA learned on Friday it has been awarded an additional Littoral Combat Ship contract worth $584 million to build yet-to-be-named LCS 28.

“This is great news that affects our 2,400 employees who live in Mobile County, 1,000 who live in Baldwin County, and our 120-plus suppliers across Alabama that support more than 15,000 direct and indirect jobs,” Austal USA said.

“Coastal Alabama’s industrial base keeps growing and with this new ship contract that will start being built next year, Austal USA continues its importance to the state and region’s economy into the future,” said BCA President and CEO William J. Canary. “It’s also a testament to the incredible skills, experience, and knowledge of Austal USA employees who make these ships that have millions of working parts.”

Austal USA said the specific value of the contract is under the congressional cost cap of $584 million per ship. Construction of LCS 28 is scheduled to begin in 2018.

“We’re very proud to be awarded this contract in such a highly competitive environment,” said Austal USA President Craig Perciavalle. “This demonstrates the Navy’s confidence in Austal being a key component in building their 355-ship fleet, which is a testament to the hard work and dedication of our incredible employees.”

Austal continues to reduce cost and deliver on schedule having delivered two LCS ships in 2016 and set to deliver two more in 2017, all under the congressional cost cap. This, along with the successful Expeditionary Fast Transport (EPF) program, positions Austal well with affordable solutions to rapidly and efficiently support the Navy’s desired fleet of 355 ships.

Austal USA will construct LCS 28, at its ship manufacturing facility in Mobile, which brings the total number of Independence-variant LCS to 14 ships.

Austal’s LCS supplier network supports more than 17,000 direct jobs with over 900 businesses across 42 states. “It’s truly a team effort that highlights the value and importance of the American industrial base,” said Perciavalle.

With five LCS and eight EPFs already delivered to the Navy, Austal-built ships are impacting worldwide operations.

“Whether we’re supporting our delivered ships in San Diego or Singapore, Thailand, or Vietnam, we continue hearing positive feedback from the fleet commanders on the value and effectiveness of our LCS and EPF,” said Perciavalle. “We remain dedicated to building these ships safely, timely and with the quality and craftsmanship our customers have come to know and expect from Austal.”

Austal USA, headquartered in Mobile, is a subsidiary of Australian-based Austal Limited. Austal USA has offices in San Diego, Washington, D.C., and Singapore. The company is well positioned to support both commercial and government ship construction as well as post-delivery service and support worldwide.

Austal USA is on contract with the U.S. Navy to build two high-speed, high-performance ship classes, the Expeditionary Fast Transport (formerly known as the Joint High Speed Vessel) and the Independence-variant Littoral Combat Ship. Austal USA is not only the newest and most state-of-the-art shipyard in the U.S., but also one of the safest as the company has earned 10 safety awards in its short 17-year history.

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