Austal USA and the Poarch Creek Indians (PCI) have signed a strategic outsourcing partnership expand shipbuilding capacity on the Gulf Coast as the U.S. Navy presses industry to ramp up output for both surface ships and submarines.

The partnership, formalized through a Memorandum of Understanding announced on Friday, is designed to support the Navy’s Maritime Industrial Base and Submarine Industrial Base.

According to both parties, production requirements for both surface and undersea vessels, driven by national shipbuilding objectives, serve as the foundation for this collaboration.

Under the MOU, PCI expects to provide support services tied to Austal’s ongoing expansion of its newest Module Manufacturing Facility, which is scheduled to come online in 2026.

The parties said workforce development initiatives and targeted production support programs are now being designed, with implementation planned in phases to match Austal’s active contract portfolio.

“This MOU is about forming new partnerships and expanding the maritime and submarine industrial bases in Alabama and along the Gulf Coast,” said Gene Miller, Austal USA Interim President.

“By aligning with PCI, a proven partner known well for the economic impact the organization has had throughout the state of Alabama, we can scale production, reduce schedule risk, strengthen supply chains, and deliver for the U.S. government while investing in American skilled workers and suppliers.”

The MOU arrives as the Navy and its partners publicly warn that the industrial base must grow to meet aggressive production goals, particularly in submarines, while also sustaining the existing fleet and building multiple new classes of surface ships.

Navy-linked reporting has highlighted the need to deliver one Columbia-class ballistic missile submarine and two Virginia-class attack submarines each year by 2028.

Austal’s Mobile shipyard is already in the midst of major growth projects tied to submarine work and large steel ship production.

RELATED: Austal USA in Mobile awarded $450 million contract to support U.S. Navy submarine programs (2024)

In 2024, Austal received a $450 million contract from General Dynamics Electric Boat connected to submarine module work, with construction of a new module fabrication/outfitting building expected to be complete in 2026 and supporting roughly 1,000 jobs when fully operational.

Austal’s dual expansion projects in Mobile totaling roughly $750 million in combined investment and projected to create about 2,000 jobs, including both the submarine module facility and a major assembly facility for large steel ships.

PCI enters the partnership as Alabama’s only federally recognized tribe, with a track record of large-scale operations and community investment.

The Tribe brings to bear $4.1+ billion in annual economic impact, $1 billion paid in annual salaries/compensation/personal income, $340 million contributed in Alabama state taxes, and $37+ million donated since 2021.

The Tribe also operates a growing federal contracting enterprise, PCI Federal, focused on best-in-class services for federal agencies and the Department of Defense, reinforcing the alignment with defense-industrial work and compliance expectations.

RELATED: Alabama’s Poarch Creek-owned PCI-GS strikes deal to fast-track AI across U.S. Department of War

“We are proud to join Austal USA in supporting critical shipbuilding capabilities for our nation,” said Stephanie Bryan, PCI Tribal Chair & CEO.

“This partnership creates new opportunities for our people, supports long-term workforce development, and strengthens Alabama’s role in advancing America’s maritime readiness. Together, we are investing in jobs, innovation, and a stronger future for the entire region,” Bryan said.

According to the two parties, all activities conducted under the MOU will adhere to Austal USA’s specifications and U.S. government standards, including rigorous quality assurance, appropriate cybersecurity controls, export-compliance requirements, and applicable Buy American provisions.