Austal Limited, the parent company of Austal USA, announced on 16 September 2024, that its American subsidiary has been awarded a contract worth approximately A$670m (US$450m) by General Dynamics Electric Boat (GDEB) to support the US Navy’s Submarine Industrial Base (SIB).
The contract aims to boost Austal USA’s production capacity at its Mobile, Alabama shipyard as part of a strategic partnership to deliver key components for the US Navy’s Virginia-class and Columbia-class submarines.
Construction is set to begin this autumn, with completion expected in 2026. The new facility will be integral to the US Navy’s ambitious goal of delivering one Columbia-class and two Virginia-class submarines annually. When fully operational, the building is expected to create around 1,000 jobs and significantly enhance the shipyard's capacity to fabricate, outfit, and transport critical submarine components.
Work at Austal USA’s Mobile shipyard has already begun on integrating command and control systems and electronic deck modules for the Virginia-class submarines. With this new contract, production will ramp up over the next few years, with full-scale fabrication and outfitting expected by 2026.
Under the agreement, Austal USA, a manufacturer that collectively support 70% of the nation’s operational nuclear weapons and is central to US strategic deterrence, will expand its existing infrastructure by designing and constructing an advanced module fabrication and outfitting facility.
This development follows recent challenges faced by the US submarine industrial base. As the US Navy prepares to deploy the Columbia-class as its next-generation nuclear deterrent, delays in design, material procurement, and quality assurance have impacted production schedules. The Columbia-class programme, designed to replace the ageing Ohio-class submarines, is the US Navy’s top priority, with the first vessel, USS District of Columbia, expected to begin its deterrent patrols in 2031.
To mitigate the delays, General Dynamics Electric Boat, the lead contractor on the Columbia programme, has increased collaboration with industry partners like Austal USA. The partnership is already contributing to the production of critical systems for the Virginia-class submarine fleet, which is also experiencing delays due to resource diversion to the Columbia-class.
Austal Limited’s Chief Executive Officer, Paddy Gregg, hailed the new contract as a testament to the growing relationship between Austal USA and GDEB. “General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines,” said Mr Gregg. “This growing partnership demonstrates confidence in Austal USA’s commitment to meet the needs of the US maritime industrial base and support the most critical needs of the US Navy,.”
The contract also highlights the broader shift within the US Navy’s procurement strategy, with the Navy moving towards a platform-centric acquisition model that aims to streamline production while ensuring that delays in one submarine class do not adversely affect others. Rear Admiral Scott Pappano, Program Executive Officer for Strategic Submarines, emphasised the need for cradle-to-grave accountability and ownership within the submarine industrial base, to meet the nation’s strategic deterrence objectives.
Additional reporting from John Hill.
