Austal Breaks Ground on New Building for Sub Module Construction

 

On Thursday, Austal USA broke ground on a dedicated manufacturing facility for submarine modules, adding much-needed capacity for the U.S. Navy's nuclear submarine construction pipeline. Attack subs and ballistic missile subs are a key part of the service's arsenal, and the Navy's prime contractors are behind schedule on deliveries. 

The new 370,000 square foot factory will contain a machine shop, an assembly area, and new waterfront facilities to allow the transfer of completed modules onto a barge for shipment. The modules will be taken to a prime contractor's yard for integration into the rest of the sub's structure, speeding up assembly. To meet the combined needs of the Columbia-class and Virginia-class programs, the Navy says that submarine production has to double, requiring an extra 3.5 to 4.5 million man-hours of submarine module production and outfitting every year. Austal's expansion is a significant part of that plan, and it includes a major increase in square footage. 

With the support of the Navy, submarine builder Electric Boat, and private equity firm CapZone, Austal recently negotiated a complex purchase agreement that gives it access to the 355-acre site of Alabama Shipyard, which is adjacent to Austal's existing facility in Mobile. Electric Boat awarded Austal a $450 million contract to expand submarine module production capacity, which helped underwrite the purchase. The prime contractor needs improvements in its supply chain: this week, it said that it is slowing down submarine production at its own plants in Connecticut because of delays in getting critical parts. 

Once all of Austal's planned expansions in Mobile are complete, it will have more than 1.5 million square feet of indoor manufacturing space to build subs, Coast Guard cutters, naval auxiliaries and other specialized government vessels.