Austal lands Navy shipbuilding contract worth up to $198M


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Austal Limited on Dec. 21 announced that Austal USA’s shipbuilding operations in Mobile has been awarded a contract worth more than $51 million from the U.S. Navy.

The contract modification – which is part of the company’s 11-ship, $3.5 billion Littoral Combat Ship (LCS) contract for the U.S. Navy – is expected to increase to $198 million over three years if specific options are exercised, the company said in a release.

The work will be done at the company’s Mobile facility, including design services for upgrades to the LCS and preliminary design for the U.S. Navy’s future Frigate.

“This contract directly reflects our customer’s confidence in Austal’s ability to build and support highly advanced ships and to meet today’s changing requirements,” said Austal CEO Andrew Bellamy.

The contract work is expected to begin immediately, with an additional $14 million in funding expected in March 2016. The remaining funding is expected in two yearly increments 12 months after the initial payout.