MOBILE, Ala. – October 23, 2024 – Austal USA has officially broken ground on its new 369,600-square-foot Module Manufacturing Facility 3 (MMF3), a key component in the shipbuilder’s ongoing expansion of its Mobile shipyard.

Why it matters: This state-of-the-art facility will support Austal’s growing role in the U.S. Navy’s submarine industrial base by producing submarine modules for the Columbia-class and Virginia-class submarines. The construction of MMF3 will also bring 1,000 new jobs to the area, continuing the company’s transformative impact on Mobile’s economy.

During the groundbreaking ceremony, Michelle Kruger, President of Austal USA, highlighted the company’s commitment to innovation and naval readiness, pointing to the new facility’s technology integrations will enhance production capabilities and efficiencies.

“This facility will usher in a new era of submarine module production here in Mobile, building on our legacy of shipbuilding and pushing the boundaries of advanced manufacturing,” said Kruger. “We’re proud to be at the forefront of this effort, working closely with the U.S. Navy and General Dynamics Electric Boat to deliver on our Nation’s critical defense needs.”

The expansion marks another chapter in Austal’s ongoing development. Take a look at the timeline since starting their steel production line in 2022.

April 2022: Opens steel shipbuilding facility

• 1,000 new jobs
• $109M expansion

July 2024: Final Assembly Building FA2 & Ship Lift Groundbreaking

• 1,000 new jobs
• $288 Million expansion

October 2024: Groundbreaking for New Module Fabrication Facility for Submarine Production.

• 1,000 new jobs
• $450 million expansion

These two projects, represent more than $750 million in expansion of Austal USA’s Mobile facility further solidifying Austal USA’s role as a major contributor to Alabama’s economy.

By the numbers: When fully operational, the two buildings will add over 2,000 new jobs.  In 2023, Austal USA’s contracts were supported by 259 Alabama-based suppliers accounting for over $115 million of business.  This includes 185 small businesses, over 50 percent of the total spend.

What they’re saying:

“Austal USA’s continued expansion in Mobile is a testament to Alabama’s growing leadership in the defense industry and our commitment to supporting our nation’s security needs,” Governor Kay Ivey said. “This new facility for submarine module manufacturing reinforces Austal’s vital role in delivering the advanced capabilities required by these vital submarine programs.”

“This $450 million expansion isn’t just about new jobs; it’s about solidifying Mobile as a national leader in defense manufacturing,” said Mobile Chamber President and CEO Bradley Byrne. “With each groundbreaking, they’re laying the foundation for Mobile’s future as an industrial powerhouse. The submarine modules produced here will play a critical role in strengthening America’s naval dominance, and Mobile is at the heart of that mission.”

What’s next: The construction of MMF3 is expected to be completed in 2026, at which point the facility will go into full production, contributing to the U.S. Navy’s goals of delivering one Columbia-class and two Virginia-class submarines annually.

“Building submarines here in Mobile is raising the bar for advanced manufacturing in our community. Austal has not only enhanced the city’s reputation as a center of shipbuilding excellence, but with every expansion, it opens new opportunities for our citizens. This is just the beginning,” said Mobile Mayor Sandy Stimpson.

As the maritime industry along the Alabama Gulf Coast continues to grow, the impact of Austal USA’s investment in workforce development and infrastructure signals a bright future for the region.

Looking ahead: Upon completion of these buildings, Austal USA’ s Mobile, Ala. ship manufacturing facility will include:

• A 117,000 square-foot steel panel line
• Two module manufacturing facilities totaling over one million square feet of covered manufacturing space optimized for serial production
• Seven assembly bays providing over 400,000 square feet of indoor erection space.

In all, the Mobile facility covers 180 acres and, when this project is complete, over 1.5 million square feet of indoor manufacturing space.