Austal USA has been awarded a $US273 million contract to build an offshore patrol vessel for the United States coast guard.
Austal USA has been awarded a $US273 million contract to build an offshore patrol vessel for the United States coast guard, with a possibility for the partnership to go up to $US3.3 billion.
In a statement to the market, the Henderson-based shipbuilder announced its US arm has received a contract option award of $US273 million, or $420.7 million.
The contract covers construction work for the second Stage 2 heritage-class offshore patrol cutter (OPC) and acquisition of material to support another vessel of the same kind.
The $US273 million option is part of a contract for up to 11 OPCs, which would be valued at $US3.3 billion or $5.1 billion.
Austal chief executive Paddy Gregg said the OPC program was gathering momentum.
“The Austal USA team have optimised the hull structure design of the first steel-hull OPC, Pickering, which will deliver a more efficient build process, a reduction in vessel weight and ultimately a longer vessel life expectancy,” he said.
“Austal USA has also developed a new 3-D model of the OPC, that is enabling each vessel module manufactured in Mobile, Alabama to be completed to an industry-leading level of completion.
“The team are effectively setting new benchmarks for manufacturing productivity and efficiency with the OPC program.”
The company has started building the second OPC, named Icarus, at its facility in Mobile.
According to Austal, the 110 metre-cutters would provide the majority of the US coast guard’s offshore presence to be used for law enforcement, drug and migrant interdiction, and search and rescue.
The OPCs have a range of 10,200 nautical miles at 14 knots and a 60-day endurance period.
Austal USA has seven ships under construction, including Icarus, and is developing an assembly facility.
“When complete, the building will provide approximately 18,000 square metres of new covered manufacturing space,” Austal said in its ASX statement.
“The building will consist of three bays, two of which are specifically designed to construct the OPC.”
Shares in Austal last traded at $7.37 each, up 6.35 per cent at market close today.
