Austal enters agreement to purchase additional land and dry dock in Alabama
Austal has announced the intention to spend approximately US$100million on building a steel shipbuilding capability
Further to its recent announcement regarding the expansion of its Mobile, Alabama facilities to build steel ships, Austal Limited is pleased to announce the execution of a conditional agreement to purchase additional waterside land and facilities in Mobile, Alabama.
This property and facilities on the Mobile River include a dry dock capable of launching not only its current range of vessels but heavier steel ships in the future.
On 22nd June, 2020 Austal announced the intention to spend approximately US$100million on building a steel shipbuilding capability co-funded by the United States Government, to provide additional capability alongside Austal’s existing aluminium construction operations.
Austal has entered into an agreement with Modern American Recycling and Repair Services of Alabama (MARRS) to acquire over 15 acres of waterfront land, buildings, and assets including an existing dry dock on the MARRS’s Mobile riverfront property in Mobile, Alabama, USA. Subject to satisfaction of the relevant conditions to purchase, the acquisition would be a useful expansion of Austal’s capacity in the Mobile area. 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. The specific conditions cannot be disclosed, however they are not unusual in transactions of this nature. The acquisition price is under US$10 million and will be funded from cash holdings.
