Austal secures US submarine module contract from General Dynamics

Western Australian company Austal Limited has been awarded a time and material (T&M) contract by General Dynamics Electric Boat (GDEB) for structural assembly fabrication in support of the US Navy’s nuclear-powered Virginia Class submarine program.

The contract, potentially worth up to US$25 million, was awarded to Mobile, Alabama-based Austal USA, for structural assembly fabrication in support of the submarines. The award is a continuation of previously announced efforts to support Electric Boat in work for the US Navy submarine industrial base.

Austal Limited CEO Paddy Gregg said the previous contract to train staff was a key enabler for the current award.

“This style of contract is recognition of Austal’s shipbuilding expertise and provides important revenue diversification and expansion,” Mr Gregg said.

The Australian government is believed to be considering the purchase of up to eight Virginia Class submarines, among other options; no decision will be made until the RAN’s Nuclear-Powered Submarine Task Force su moots its final report and recommendations on the project in March.