- Austal’s (ASB) US business wins US$145 million (around A$198 million) contract with the United States Navy
- The contract is to build two towing, salvage and rescue ships
- This is Austal US’s first steel vessel construction contract and will be built at its new production facility in Mobile, Alabama
- On the market this afternoon, Austal is up 3.21 per cent and is trading at $1.93 per share at 2:52 pm AEDT
Austal’s (ASB) US business has been awarded a US$145 million contract (around A$198 million) from the United States Navy.
The contract is to build two towing, salvage and rescue ships (T-ATS 11 and 12).
This is Austal US’s first steel vessel construction contract and will be built at its new production facility in Mobile, Alabama.
Notably, the contract also establishes an option to build a further three ships. If this happens it will bring the total cumulative value of the contract to US$385 million (about A$528 million).
These ships will help the US Navy with fleet operations and a variety of missions such as oil spill response, humanitarian assistance and wide area search and surveillance.
CEO Paddy Greg said this contract was an “exciting milestone” for the company.
“This is great news for Austal USA as they enter a new era of steel shipbuilding in the United States, supporting the Navy’s requirements for steel ships,” he told the market.
On the market this afternoon, Austal was up 3.21 per cent and is trading at $1.93 per share at 2:52 pm AEDT.