US Navy Awards Austal LCS Contract

The U.S. Navy has awarded Austal a contract for construction of up to 10 Littoral Combat Ships (LCS). Contract for the first vessel is valued at $432.1 million with options for nine additional vessels over the following five years. Austal’s shipyard in Mobile, Alabama, will commence construction of the first LCS in early 2012 after expanding its facility and workforce, which is expected to take approximately 12 months and cost $140 million. The first ship is scheduled for delivery in 2015. The contract will enable Austal to double its US workforce to around 3800 employees.

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