Austal has entered into a conditional agreement to purchase additional waterside land, buildings and dry dock in Mobile, Alabama. The news follows its announcement in June that it will spend approximately USD 100 million on constructing a steel shipbuilding facility co-funded by the US government. The property and facilities on the Mobile River are capable of launching not only its current range of vessels but also heavier steel ships in the future.
Austal will be acquiring over 15 acres of waterfront land, buildings, and assets from Modern American Recycling and Repair Services of Alabama (MARRS) for under US$10 million and will be funded from cash holdings.
“Subject to satisfaction of the relevant conditions to purchase, the acquisition would be a useful expansion of Austal’s capacity in the Mobile area,” Austal said in an ASX release.
“The acquisition would support Austal USA’s new construction and service strategy by securing launch and deep water berthing capability in support of future new construction efforts including steel ships, while also giving Austal USA increased service and repair capacity in Mobile.”
The acquisition is subject to a number of conditions that are required to be satisfied before completion, which is targeted to occur in the next few weeks.
Austal’s US manufacturing facility and headquarters is located on 164 acres of land on the Mobile River. MARRS is located across the river and will increase the ability of Austal USA to expand its aluminium, steel and repair operations in a vital part of the United States that, boasts a rich tradition of shipbuilding and repair work.