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Austal USA in Mobile awarded $450 million contract to support U.S. Navy submarine programs

According to the Mobile Chamber and the company, Austal USA has been awarded a $450 million contract by General Dynamics Electric Boat to expand production capacity at its shipyard in Mobile shipyard in support of the U.S. Navy Submarine Industrial Base (SIB).

The contract will enable Austal to expand and enhance its existing infrastructure by designing, constructing and outfitting a new module fabrication and outfitting facility at its Mobile shipyard to support the U.S. Navy goal of delivering one Columbia-class and two Virginia-class submarines annually.

Construction will move fast, beginning this autumn, with an expected completion date in 2026. When fully operational, the building will support approximately 1,000 jobs and provide capability to fabricate, outfit, and transport submarine components.

“Austal USA’s $450 million contract to expand submarine module production is a game-changer for the Mobile region,” Mobile Chamber President and CEO Bradley Byrne said.

“This significant investment not only strengthens our local economy but also highlights the critical role Mobile plays in supporting U.S. naval defense. The expansion will create nearly 1,000 jobs, further cementing Mobile as a hub for innovation and industry. We are excited to see this project take shape and remain committed to supporting Austal USA’s continued growth and success.”

RELATED: Forbes: Alabama’s Port of Mobile is second fastest-growing in U.S.

Austal Limited Chief Executive Officer Paddy Gregg noted this contract award is a testament to the growing partnership with General Dynamic Electric Boat and demonstrates its confidence in Austal USA as a valuable industry partner for these two important U.S. Navy submarine programs.

“General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines. This growing partnership demonstrates confidence in Austal USA’s commitment to meet the needs of the U.S. maritime industrial base and support the most critical needs of the U.S. Navy,” Mr. Gregg said.

Just in recent months, Austal also announced plans to expand its Mobile shipyard with the construction of an additional waterfront assembly facility to support the growth of shipbuilding in Alabama’s Port City. The expansion project, fueled by a capital investment of more than $288 million, is set to create 1,032 new jobs over the next four years.

Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270

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