June 18, 2023

Austal USA awarded contract option for a fifth Towing, Salvage and Rescue (T-ATS) Ship for the US Navy


19 JUNE 2023


Austal Limited (ASX:ASB) is pleased to announce that Austal USA has been awarded a US$71,706,745 (~A$104 million) fixed-price incentive contract option from the United States Navy for the construction of an additional Navajo-class Towing, Salvage and Rescue Ship (T-ATS 15).

With the award, the company is now under contract for five T-ATS, having received awards for T-ATS 13 and 14 in July 2022 and T-ATS 11 and 12 in October 2021.

Austal Limited Chief Executive Officer Paddy Gregg said the contract award again highlights Austal USA’s growing steel shipbuilding capability, following the start of construction on T-ATS 11 and 12, and more recently the Auxiliary Floating Dock Medium, for the United States Navy.

“Austal USA’s steel shipbuilding capabilities and capacity continues to impress, with three steel vessels now underway in Mobile, Alabama; in addition to the multiple aluminium vessels and component projects also under construction,” Mr Gregg said.

“In addition to the LCS, EPF and T-ATS programs, construction has just commenced on the steel Auxiliary Floating Dock Medium (AFDM), which will further demonstrate Austal USA’s capabilities and capacity to deliver large steel vessels for the United States Navy and United States Coast Guard.”

“The Austal USA team are also delivering submarine modules for the Virginia-class submarines and aircraft elevators for the Gerald R. Ford-class aircraft carriers, so they are without doubt making a significant contribution to the United States’ defence industrial base.”

T-ATS is an ocean-going tug, salvage, and rescue ship designed to support the United States Navy’s fleet operations, with a multi-mission common hull platform capable of towing heavy ships. The ships can support a variety of missions, including oil spill response, humanitarian assistance, search and rescue and surveillance.

With construction due to commence on T-ATS 13 and 14 in the second half of CY2023, T-ATS 15 is scheduled to commence construction in the first half of CY2024, with delivery planned in late 2027.

Austal USA will utilize its proven ship manufacturing processes and innovative methods that incorporate lean manufacturing principles, modular construction, and moving assembly lines, all housed under the company’s state-of-the-art enclosed steel production facility in Mobile, Alabama. This unique production capability continues to position Austal USA to meet the ongoing, growing demands of both the Navy and Coast Guard.

In addition to T-ATS, Austal USA is currently constructing the United States Navy’s Independence-variant Littoral Combat Ships and Spearhead-class Expeditionary Fast Transport ships and has commenced construction of a 211-metre steel Auxiliary Floating Drydock (Medium).

In May 2023 Austal USA was awarded a contract for the detail design and construction of up to 7 steel T-AGOS Ocean Surveillance Ships worth up to US$3.2 billion and in 2022, the company was awarded a contract for up to 11 steel Offshore Patrol Cutters for the United States Coast Guard, worth up to US $3.3 billion.

This ASX announcement has been approved and authorised for release by Paddy Gregg, Austal Limited’s Chief Executive Officer.

Austal USA has been awarded a contract for an additional Towing, Salvage and Rescue ship (T-ATS 15) for the US Navy (Image: US Navy)


Media Contact:

Cameron Morse

+61 433 886 871



Further Information

Contact: Austal
Phone: 61 8 9410 1111
Fax: 61 8 9410 2564