Austal USA lands US Navy contract to build additional ship in Mobile

LCS ship

Austal USA has been awarded a construction contract to build an additional Independence-variant Littoral Combat Ship, its fifteenth ship in the class, for the U.S. Navy.

The contract is an economic boon for the Yellowhammer State as Austal USA will build the ship at its Mobile, Ala. headquarters and manufacturing facility, which employs 4,000 people and includes a supplier network of over 2,200 businesses across 43 states.

“When Alabama’s businesses succeed, Alabamians succeed,” said Gov. Kay Ivey of the newly awarded contract. “Austal USA is a 21st-Century, technology-driven, employer which provides good wages and good opportunities for its employees. Austal is critical to our state’s high-tech military and aerospace manufacturing sector.

Ivey continued,  “By adding to its ship order, the U.S. Navy is signaling its confidence in Austal’s products and the employees who build it. Alabama has a skilled workforce that is known for producing high-quality goods. I look forward to more announcements like this one from Austral, as well as other companies that do business in Alabama, because of our trained workforce and our positive business environment.”

Austal would not reveal the value of the contract, but confirmed the value is under the congressional cost cap of $584 million per ship.

“We’re honored to be awarded this contract in such a highly competitive environment,” said Austal USA President Craig Perciavalle. “This further supports the Navy’s recognition of Austal as a key component in building their 355-ship fleet, which is a testament to the hard work and commitment of our talented employees and dedicated supplier network.”

The littoral combat ship has been identified as a key component to the Navy’s ability to gain sea control through distributed lethality.

Austal is the fifth largest shipbuilder in the United States