COMPANY ANNOUNCEMENT

6 AUGUST 2018

AUSTAL AWARDED ADDITIONAL US$14.8M CONTRACT FOR U.S. NAVY LCS SERVICE WORK

AUSTAL (ASX: ASB) today announced the United States Department of Defence has awarded Austal USA US$14,843,400 for a cost-plus-award fee against a previously awarded Basic Ordering Agreement.

The order provides engineering and management services in support of work specification development, prefabrication effort and material procurement for the post-shakedown availability for the Independence Class Littoral Combat Ship, USS Tulsa (LCS 16).

Austal will provide program management, advanced planning, engineering, design, prefabrication and material kitting. The work will be conducted by Austal USA across the Mobile, Alabama and San Diego, California facilities and completed by August 2019.

“Austal’s Independence Class, Littoral Combat Ship program has a significant economic footprint throughout the United States. This program delivers a next generation capability for the US Navy and supports tens of thousands of jobs, through the contributions of Austal’s supply chain, comprising over 900 local suppliers in 41 states,” Austal CEO, David Singleton said.

“Austal’s USA team delivers this program at a seamless rate with these ships joining the fleet in rapid succession. The advanced manufacturing process we have developed in Mobile is a huge advantage for Austal to efficiently deliver any future orders for Navy. There is no doubt the significant contribution these combatants are making in supporting the growth to a 355 ship fleet” he said. 

The LCS is a 127m, frigate sized vessel, built at Austal facilities in Mobile, Alabama. The program is in a full rate of production with several ships under construction simultaneously. Charleston (LCS 18) has just completed acceptance trials with Cincinnati (LCS 20) following closely commencing trials shortly. Final assembly is well underway on Kansas City (LCS 22) and Oakland (LCS 24). Mobile (LCS 26) and Savannah (LCS 28) modules are under construction in the MMF and Canberra (LCS 30) has commenced pre-production.

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Austal Media Contact:

Contact:             Gemma Whiting - Government Relations

Mobile:              +61 (0)408 982 727

Email:                gemma.whiting@austal.com

Website:            www.austal.com