Austal Limited (ASX:ASB) is pleased to announce Austal USA has been awarded a $450 million contract by General Dynamics Electric Boat. The contract will enable Austal USA to expand production capacity at its US shipyard in support of the U.S. Navy Submarine Industrial Base (SIB).

This contract award will fund Austal USA to 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 of the new building will start this US autumn and be complete 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,” said Mobile Chamber President and CEO Bradley Byrne. “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.”

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.