Austal Limited has announced that its subsidiary, Austal USA, received a contract option award from the United States Coast Guard for the construction of the second Stage 2 Heritage-class offshore patrol cutter (OPC). The contract also includes the acquisition of long lead-time material to support construction of a third Stage 2 OPC. The $US273 million option forms part of a larger contract potentially worth $US3.3 billion, encompassing options for up to 11 OPCs.
Construction of the second OPC, named Icarus, has already commenced at Austal’s shipbuilding facility in Mobile, Alabama. Austal specialises in designing, constructing, and maintaining defence and commercial vessels. It is Australia’s only listed shipbuilder and operates shipyards in Australia and the United States.
The announcement follows news earlier in the week that Austal secured billions of dollars in work, including contracts for the construction of numerous new vessels for the Australian Defence Department. The federal government has designated Austal as a strategic asset, a move that is expected to make the company a less attractive takeover target for overseas buyers.
Following the announcements, Austal’s stock experienced a surge, climbing 5.3 per cent to reach $7.30 on Wednesday. The contracts underscore Austal’s position as a key player in naval shipbuilding for both the US and Australian governments.
