Austal wins $25m US Navy contract

Australian shipbuilder Austal has secured a contract with the US Navy Virginia-class submarine program worth up to $US25 million.  

The Perth-based shipbuilder and designer was awarded the time and material contract from General Dynamics Eclectic Boat through its subsidiary Austal USA.

The contract is for structural assembly fabrication in support of the US submarine program, which is a class of nuclear-powered cruise missile fast-attack submarines.

The contract builds on an existing relationship with General Dynamics for work with the US Navy submarine industrial base.

Austal chief executive 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,” he said.

At market close, Austal shares were down 1.47 per cent to trade at $1.67.