The U.S. Department of Defense awarded Austal USA (ASB:AU), the U.S. subsidiary of Australia’s Austal, a contract for two more Joint High Speed Vessels (JHSV). These represent the fourth and fifth ships of the class being built for the U.S. Navy and Army. The JHSV will be used to move supplies and equipment to an area where they are needed. As there name implies they are much faster then traditional merchant shipping.
This order follows one for the advanced procurement items issued four months ago worth $100 million. This contract has a value of about twice that. Austal is building as many as ten under the contract but ultimately the U.S. would like to buy over fifty. Austal would be one of the sources considered for the follow on contracts.
Austal is known for making high speed ferries but their U.S. subsidiary based in Mobile, AL has branched out into military projects. They have teamed with General Dynamics (GD) to build one of the designs accepted for the original Littoral Combat Ship (LCS) program. The Navy was going to have this team along with Lockheed Martin (LMT) build the ships but has now changed their minds after the first three were started to have a competition for the remaining ships. Austal will most likely be one of the bidders for that contract.
The first JHSV will be delivered at the end of next year. The first of many ships that the company will build for the U.S. Navy Austal hopes.
