Southwest Alabama economy to benefit from Austal USA and SSAB Americas agreement

Austal USA has contracted with Alabama steel producer SSAB to build ships in Mobile. Partnering with vendors directly supports hundreds of jobs in the mobile area, said Austal USA president Rusty Murdaugh.

In October, the U.S. Navy awarded Austal a $ 145 million contract to build steel-hulled tow, rescue and rescue vessels, launching Austal’s first steel-building program. Austal will source SSAB steel sheet of various strengths and sizes that can be cut, shaped, welded and tailored for potential support ships and combat ships.

“SSAB not only provides us with quality steel, but also great flexibility due to its location next to us here in Mobile, Alabama,” said Murdaugh. “The ability to work quickly and in person with them on current and future US Navy and Coast Guard steel needs is an asset to Austal that will support our business and economic growth in our community. “

Austal USA launched a $ 100 million steel fabrication line in March 2020 to help meet demand for federal government steel vessels. The state-of-the-art production line will be operational in April 2022, Murdaugh said.

“Austal USA is a respected and valued partner of SSAB Americas,” said Jeff Moskaluk, senior vice president and chief commercial officer of SSAB Americas. “Our participation in such an important and vital project, which will strengthen both the economic and national security of our country, makes this partnership even more meaningful. We are proud to work closely with Austal USA and demonstrate the service, quality and value provided by an interconnected, local supply chain here in Alabama.

Austal USA was awarded a $ 72.5 million contract with the Navy in November to provide services and support to Coastal Combatant Vessels (LCS) deployed in the Western Pacific and Indian Ocean. It was the Navy’s third major contract in the past four years, said Murdaugh, who became president of the company on September 9. If all options are exercised, the contract will be for five years and bring the total value to $ 215.8 million.

“Our consistent delivery of quality ships on budget and on schedule continues to lead the industry,” said Murdaugh. “Our highly skilled workforce takes pride in maintaining the excellence that our customers know and expect from Austal. “

In September 2020, Austal purchased 15 acres of new waterfront jetty, 400,000 square feet of indoor and outdoor manufacturing facilities and a 20,000 ton floating dry dock along the Mobile River. The area across from Austal USA’s corporate headquarters campus, which spans 165 acres, is used to repair vessels up to 1,000 feet in length.

The SSAB Mobile Plant was founded in 2001 and is one of the most advanced steel facilities in the world. Its two electric arc furnace lines have a production capacity of over 300,000 tonnes per year.

The SSAB Americas Mobile factory operates with the least possible impact on the environment, said Leigh Perry-Herndon, director of communications. The company uses more than 94% recycled waste materials, including metals such as discarded appliances and old car parts diverted from landfills.

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