Anchors away: Austal (ASX:ASB) sets sail with shipbuilding facility

• Austal (ASB) has begun construction at Austal USA’s steel shipbuilding facility in Mobile, Alabama
• To mark the start of construction, Austal USA hosted a ceremony at its shipyard on March 26
• Once completed, the facility will provide the capability to meet the increasing demand for ships from the U.S. Navy and U.S. Coast Guard
• Construction of the facility is expected to be completed by April 2022 and the costs will be co-funded by the United States Government
• Austal has ended the day 4.74 per cent in the red with shares trading at $2.21

Austal (ASB) has begun construction at Austal USA’s steel shipbuilding facility in Mobile, Alabama.

To mark the start of construction, Austal USA hosted a ceremony at its shipyard on March 26.

In attendance at the meeting was Mobile Mayor Sandy Stimpson, Austal USA Interim President Rusty Murdaugh and Congressman for Alabama’s First District Jerry Carl.

“This world-class steel manufacturing line is a treasure for the Gulf Coast, the U.S. Navy and the U.S. Coast Guard that will provide a much-needed boost to the defence industrial base and our nation’s defence,” Jerry said.

Once completed, the facility will provide the capability to meet the increasing demand for ships from the U.S. Navy and U.S. Coast Guard.

The facility will cost roughly US$100 million (around A$131 million) and will be co-funded by the United States Government.

“Austal USA’s new steel shipbuilding facility puts us in a prime position to target numerous major steel shipbuilding programs included in the U.S. Navy’s shipbuilding plan,” CEO Paddy Gregg commented.

“Today’s ground-breaking marks the start of construction of facilities that will enable Austal USA to build the next generation of the U.S. Navy and U.S. Coast Guard’ ships,” he added.

Construction of the facility is expected to be completed by April 2022.

Austal has ended the day 4.74 per cent in the red with shares trading at $2.21 in a $834.1 million market cap.