Austal USA expands waterfront ship repair capabilities in San Diego

COMPANY ANNOUNCEMENT

10 NOVEMBER 2021

Austal USA expands waterfront ship repair capabilities in San Diego

Austal Limited (Austal) (ASX: ASB) is pleased to announce that Austal USA has received approval from the Port of San Diego Board of Port Commissioners to assume the lease of Marine Group Boat Works in the Port of San Diego, USA.

Austal USA and Marine Group Boat Works are entering a 45-day exclusive period to close the agreement for Austal to take on the lease. Austal USA will use the 15-acre site to focus on ship repair for United States Navy, Military Sealift Command, and Coast Guard ships. The site, immediately adjacent to U.S. Naval Base San Diego, will include a newly-built dry dock designed specifically to handle small surface combatants and other small to medium size ships.

Austal Limited Chief Executive Officer Paddy Gregg said the Port’s approval of the lease highlights the successful, continued expansion of Austal USA’s service business in the United States and reaffirms the company’s support for the Navy, Military Sealift Command and Coast Guard.

"Austal USA’s presence is growing across the United States and this latest expansion of facilities in San Diego enables our service business to deliver even greater through-life support for vessels operating on the West Coast,” Mr Gregg said.

Austal USA President Rusty Murdaugh said the investment anchors the company’s commitment to servicing Navy, Military Sealift and Coast Guard ships in the INDO-PACOM region.

“This facility expands our commitment to our customers to ensure they are receiving the Austal brand quality throughout the lifecycle of the ships we deliver.

“As the industry leader for on-schedule and on-budget delivery to the United States Navy, Austal USA has made continuous improvement a cornerstone of our culture and operations,” Mr Murdaugh added.

Austal USA will establish a full service ship repair capability providing maintenance and modernization for small surface combatants, autonomous vehicles, and other vessels. The site will include a dry dock optimized to execute availabilities on littoral combat ships and other small surface combatants. Services include technical and material support, topside work, and dry docking availabilities.

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