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Austal (ASX:ASB) delivers twelfth Littoral Combat Ship to U.S. Navy

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ASX:ASB      MCAP $819.1M
30 June 2020 10:15 (AEST)

Shipbuilder and defence contractor Austal (ASB) has delivered its twelfth Independence-class Littoral Combat Ship (LCS) to the U.S. Navy.

As Australia’s largest defence exporter, the company has been contracted for more than 300 vessels for over 100 commercial and military operators in 54 countries worldwide.

Its latest delivery, the future USS Oakland, is the second ship to be sent by Austal USA this year from its shipyard in Mobile, Alabama. It follows the USS Kansas City that was delivered in February.

The Independence-class LCS is a fast and agile vessel designed for near-shore environments, but is also capable of open-ocean operations. It’s built with a specific focus on asymmetric “anti-access” threats, including mines, quiet diesel submarines and fast surface craft.

A total of 127 metres in length, the high-speed trimaran features a range of new technologies and capabilities to support a host of applications.

David Singleton, CEO of Austal, said the latest delivery demonstrates Austal USA’s commitment to producing results in a challenging operating environment.

“There is a strong sense of pride and accomplishment at Austal USA with the successful delivery of LCS 24, during this current COVID-19 pandemic.

“Austal USA has met the challenge to safely and efficiently maintain the delivery schedule of the future USS Oakland, while continuing to perform a critical role in the United States’ defence industrial base,” he added.

There are currently a further five LCSs under various stages of construction at the Mobile shipyard. These include the USS Mobile, which is preparing for sea trials; the USS Savannah and USS Canberra, which are being assembled; and the USS Santa Barbara and USS Augusta, which are in early stages at the company’s module manufacturing facility.

In addition, Austal USA has 14 contracts to build Expeditionary Fast Transport vessels for the U.S. Navy, 11 of which have already been delivered. Two of these are currently under construction, with another scheduled for work to begin.

Austal shares are up 4.13 per cent, trading for $3.28 per share at 11:09 am AEST.

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