Governor Kay Ivey announced today that Alabama has been recognized by Business Facilities magazine with its prestigious “Deal of the Year” Impact Award in the Defense Manufacturing category for Austal USA’s transformative growth projects at its shipyard in Mobile.
The recognition from the national publication highlights Alabama’s critical role in bolstering U.S. national security and advancing economic growth along the Gulf Coast.
The award celebrates Austal USA’s dual expansion projects in Mobile, representing a combined investment of $750 million and the creation of 2,000 jobs. These projects include a cutting-edge Submarine Module Fabrication Facility and a state-of-the-art Assembly Facility for Large Steel Ships.
“This honor reaffirms Alabama’s position as a leader in advanced defense manufacturing and innovation,” Governor Kay Ivey said. “Austal USA’s investments in Mobile not only strengthen our nation’s security but also provide a tremendous economic boost to our state.
“We are proud of Austal’s success and the impact these projects will have on our workforce, our communities, and the entire Gulf Coast region.”
Growth plans
The Submarine Module Fabrication Facility, announced in October 2024, will support the U.S. Navy’s ambitious goal of delivering one Columbia-class and two Virginia-class submarines annually. Featuring advanced technologies such as digital twins and automation, the 369,600-square-foot facility is set to create 1,000 jobs by its completion in late 2026.
The Assembly Facility for Large Steel Ships, announced in July 2024, will enable the production of vital vessels for the U.S. Navy and Coast Guard, including Offshore Patrol Cutters and surveillance ships. This project includes a new 192,000-square-foot assembly bay and a shiplift system for vessel launches, creating an additional 1,000 jobs.
Ellen McNair, Secretary of the Alabama Department of Commerce, praised Austal’s visionary leadership and the far-reaching impact of the company’s growth plans in Mobile.
“Austal USA’s expansion represents a game-changing moment for Alabama’s economy and the future of U.S. defense manufacturing,” Secretary McNair said. “These projects not only highlight the incredible talent of our workforce but also demonstrate Alabama’s ability to support the most sophisticated technological advancements in shipbuilding and submarine production.
“This recognition is well-earned and reflects the unparalleled partnership between the state and Austal USA,” she added.
Local impact
Austal’s operations have a massive economic impact in Alabama, particularly within the Mobile region.
In 2023 alone, 259 Alabama-based suppliers, including over 185 small businesses, contributed more than $115 million to Austal’s projects, according to the company. Approximately 72% of Austal’s production workforce resides in Mobile County, underscoring the local economic impact of these expansions.
“This recognition underscores the significant role Austal USA plays in bolstering our national defense and in driving economic growth and innovation on the Gulf Coast,” said Bradley Byrne, President and CEO of the Mobile Chamber.
“The dual expansions at Austal’s Mobile shipyard are a testament to our region’s industrial strength and skilled workforce, and we are proud to see their efforts honored with this prestigious award.”
Austal’s transformation from an aluminum-focused shipbuilder to a diversified defense manufacturing powerhouse solidifies Alabama’s reputation as a hub for innovation and excellence in advanced manufacturing.
“Alabama is building the future of defense manufacturing, and Austal USA’s investment underscores our state’s critical role in advancing U.S. national security while delivering tangible economic benefits for our communities,” Governor Ivey added.
This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.
