US Navy funds Austal to build two more ships

SP's MAI - - MILITARY -

Austal USA’s or­der back­log has grown by ap­prox­i­mately $681.7 mil­lion as a re­sult of two ad­di­tional Lit­toral Com­bat Ship (LCS) con­tract op­tions be­ing ex­er­cised by the United States Navy.

The con­tract op­tions fund con­struc­tion of the LCS 14 and LCS 16, the fifth and sixth ships in the 10-ship block buy award made to an Austal-led team in De­cem­ber 2010. That 10-ship pro­gramme is po­ten­tially worth over $3.5 bil­lion.

Austal Chief Ex­ec­u­tive Of­fi­cer An­drew Bel­lamy said the com­pany’s US Navy pro­grammes pro­vide rev­enue and work­load for years to come.

“Austal’s pro­duc­tion of th­ese rev­o­lu­tion­ary ships con­tin­ues to ex­pand and im­prove, si­mul­ta­ne­ously de­liv­er­ing bet­ter pro­gramme out­comes for the Navy and im­proved fi­nan­cial re­sults for the com­pany’s share­hold­ers,” he said.

Austal USA Pres­i­dent, Craig Per­ci­avalle, said “This con­firms the Navy’s com­mit­ment to the LCS pro­gramme and their con­fi­dence in Austal.”

Austal USA is a full-ser­vice ship­yard of­fer­ing de­sign, con­struc­tion and high-speed ves­sel ser­vice and re­pair. As Austal USA con­tin­ues to ex­pand its ser­vice and re­pair ca­pa­bil­i­ties, the com­pany is well-po­si­tioned for new busi­ness with en­gi­neer­ing, test and tri­als ca­pa­bil­i­ties, and a new waterfront fa­cil­ity on the Mo­bile Bay waterfront.

Austal has been con­tracted by the US Navy to build ten 103-me­tre JHSVs un­der a 10-ship, $1.6-bil­lion con­tract, one of which has al­ready been de­liv­ered, and eight 127me­tre In­de­pen­dence-vari­ant LCS class ships (in­clud­ing USS In­de­pen­dence, de­liv­ered to the Navy in 2009), six of which are a part of a 10-ship, $3.5-bil­lion con­tract.

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