- Austal’s (ASB) subsidiary, Austal USA, receives a US$156 million (A$225 million) fixed-price incentive contract option from the US Navy
- The contract is for the construction of two Navajo-class Towing, Salvage, and Rescue Ships (T-ATS) named T-ATS 13 and 14, respectively
- Austal CEO Paddy Greg says this contract award re-affirmed the US Navy’s great confidence in Austal USA’s capabilities as a steel shipbuilder
- The production capability positions Austal USA to meet the ongoing and growing demands of both the Navy and Coast Guard
- Shares in Austal are up 0.99 per cent, trading at $2.56 just before market close
Austal’s (ASB) US subsidiary, Austal USA, has been awarded a US$156 million (A$225 million) fixed-price incentive contract option from the US Navy.
The contract is for the construction of two Navajo-class Towing, Salvage, and Rescue Ships (T-ATS) named T-ATS 13 and 14, respectively.
The company is now under contract for four T-ATS, having received awards for T-ATS 11 and 12 in October 2021.
T-ATS are an ocean-going tug, salvage, and rescue ship designed to support the US Navy’s fleet operations, with a multi-mission common hull platform capable of towing heavy ships.
Austal CEO Paddy Greg said the latest contract award re-affirmed the US Navy’s great confidence in Austal USA’s capabilities as a steel shipbuilder.
“It’s a great sign of confidence by the Navy, in the Austal USA team’s ability to deliver both steel and aluminium ships simultaneously, that they have awarded a contract for another two vessels,” he said.
“Congratulations to the Austal USA on yet another multiple steel vessel contract, which will go even further to demonstrate the company’s diverse capabilities, in aluminium and steel.”
The ships are capable of supporting a variety of missions, including oil spill response,
humanitarian assistance, search and rescue, and surveillance.
The production capability positions Austal USA to meet the ongoing and growing demands of both the Navy and Coast Guard.
Construction on T-ATS 13 and 14 will commence in the second half of 2023 and first half of 2024, with delivery planned for the second half of 2025 and first half of 2026, respectively.
In addition to T-ATS, Austal USA is currently constructing the US Navy’s independence-variant Littoral Combat Ship and Spearhead-Class Expeditionary Fast Transport and is under contract for the construction of a 211-metre steel Auxiliary Floating Drydock Medium.
The company was also recently awarded a contract for up to 11 steel Offshore Patrol Cutters for the US Coast Guard, worth up to US$3.3 billion.
Shares in Austal were up 0.99 per cent, trading at $2.56 just before market close.