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Alabama Receives National Recognition for Austal USA’s Defense Manufacturing Expansion

Governor Ivey Announces Business Facilities’ “Deal of the Year” Impact Award for Austal USA Expansion in Mobile

Montgomery, AL – Governor Kay Ivey announced Tuesday that Alabama has been awarded the “Deal of the Year” Impact Award in the Defense Manufacturing category by Business Facilities magazine. This prestigious recognition highlights Austal USA’s transformative $750 million growth projects at its shipyard in Mobile, showcasing Alabama’s role in enhancing U.S. national security and driving economic development along the Gulf Coast.

The award honors Austal USA’s dual expansion projects, which are set to create 2,000 jobs in Mobile. These include a Submarine Module Fabrication Facility and an Assembly Facility for Large Steel Ships, both representing cutting-edge advancements in defense manufacturing.

“This honor reaffirms Alabama’s position as a leader in advanced defense manufacturing and innovation,” Governor Ivey stated. “Austal USA’s investments in Mobile not only strengthen our nation’s security but also provide a tremendous economic boost to our state. We are proud of Austal’s success and the impact these projects will have on our workforce, our communities, and the entire Gulf Coast region.”

The Submarine Module Fabrication Facility, announced in October 2024, will support the U.S. Navy’s goal of delivering one Columbia-class and two Virginia-class submarines annually. Spanning 369,600 square feet, the facility incorporates advanced technologies like digital twins and automation and is expected to create 1,000 jobs by late 2026.

The Assembly Facility for Large Steel Ships, announced in July 2024, will focus on building Offshore Patrol Cutters and surveillance ships for the U.S. Navy and Coast Guard. The facility includes a 192,000-square-foot assembly bay and a state-of-the-art shiplift system, adding another 1,000 jobs to the region.

Austal USA’s expansion is having a significant economic impact on Alabama. In 2023, 259 Alabama-based suppliers, including over 185 small businesses, contributed more than $115 million to Austal’s projects. With 72% of Austal’s production workforce residing in Mobile County, the local economy stands to benefit greatly from these expansions.

“Austal USA’s expansion represents a game-changing moment for Alabama’s economy and the future of U.S. defense manufacturing,” said Ellen McNair, secretary of the Alabama Department of Commerce. “These projects highlight the incredible talent of our workforce and Alabama’s ability to support the most sophisticated technological advancements in shipbuilding and submarine production.”

Bradley Byrne, president and CEO of the Mobile Chamber, praised the recognition as a testament to the region’s industrial strength and skilled workforce. “The dual expansions at Austal’s Mobile shipyard are a testament to our region’s industrial strength and skilled workforce, and we are proud to see their efforts honored with this prestigious award,” Byrne said.

The recognition underscores Alabama’s growing reputation as a hub for advanced manufacturing and innovation, with Austal’s evolution from an aluminum shipbuilder to a diversified defense manufacturing leader solidifying its position in the industry.

Governor Ivey concluded, “Alabama is building the future of defense manufacturing, and Austal USA’s investment underscores our state’s critical role in advancing U.S. national security while delivering tangible economic benefits for our communities.”

The Business Facilities award not only honors the achievements of Austal USA but also cements Alabama’s standing as a leader in defense manufacturing and economic development.

 

Governor Ivey Announces Business Facilities’ “Deal of the Year” Impact Award for Austal USA Expansion in Mobile

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