USS Pierre (LCS-38) at Austal USA’s shipyard in Mobile, Ala., as it prepares for launching into the water. (Photo courtesy of Austal USA)

WASHINGTON — General Dynamics Electric Boat awarded Austal USA a $450 million contract to expand infrastructure at its Mobile, Ala., shipyard for Virginia- and Columbia-class submarine construction, Austal announced today.

The contract will include designing and building a new module fabrication and outfitting facility, which will begin construction this fall and is expected to be completed in 2026. Once fully operational, the new facility is expected to support approximately 1,000 new jobs at the shipyard, according to an Austal statement.

“This contract award further solidifies Austal USA’s strong industrial partnership with General Dynamics Electric Boat to increase capacity in the submarine industrial base,” said Austal USA President Michelle Kruger.

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A GD Electric Boat spokesperson had no comment about the announcement when contacted by Breaking Defense.

In January 2023, Austal in conjunction with both the Navy and Electric Boat took on new work building certain modules of the Virginia- and Columbia-class submarines as a way to relieve workload pressure from submarine prime contractor EB.

The new building will provide 369,000 square feet of production space across eight and a half acres of land, the Austal statement added.

“This award represents another significant milestone in the transformation of our Mobile facility to meet the diverse needs of our Navy and Coast Guard customers,” said Larry Ryder, Austal USA vice president of business development and external affairs. “Since we broke ground for our steel panel line in 2021, we have continuously worked to grow the capacity and capability of our Mobile shipyard leveraging our highly skilled workforce.”

The contract comes just days after the Navy announced it had established a separate deal with a private investment fund, United Submarine Alliance Qualified Opportunity Fund LP, or USA Fund, aimed at boosting the submarine industrial base. That deal, which included a $152 million investment by the Navy through Austal, purchased the 355-acre Alabama Shipyard situated adjacent to Austal’s own facilities.