Austal wins $48m in more US navy work

Henderson-based shipbuilder Austal says a modification to a previously awarded contract for littoral combat ships with the US Department of Defense is worth about $US36.6 million ($A47.8 million).

Austal said it had been awarded the cost-plus-fixed-fee modification to the contract to exercise options for the accomplishment of LCS core class services and special studies.

“Austal will assess engineering and production challenges, evaluate cost and schedule risks, conduct studies and analyses of alternate processes as well as test new technology candidates, as directed by the US government,” Austal said.

“The additional work is expected to be completed by March 2018.

Austal’s focus on the defence shipbuilding industry follows news yesterday that Perth-based, Singapore-listed Civmec had entered into an agreement with ASC Shipbuilding to jointly bid for the development of 12 offshore patrol vessels for the Royal Australian Navy.

Austal shares were 0.6 per cent lower to $1.65 each at the close.