Austal USA enters agreement to purchase additional land, buildings, and dry dock in Mobile, Alabama.
21 August 2020
Further to its recent announcement regarding the expansion of its Mobile, Alabama facilities to build steel ships, Austal Limited (ASX:ASB) 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 Austalís existing aluminium construction operations.
Austal has entered into an agreement with Modern American Recycling and Repair Services of Alabama (MARRS) today to acquire over 15 acres of waterfront land, buildings, and assets including an existing dry dock on the MARRSís Mobile riverfront property in Mobile, Alabama, USA. Subject to satisfaction of the relevant conditions to purchase, the acquisition would be a useful expansion of Austalís capacity in the Mobile area.
The acquisition would support Austal USAís 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.
Austal USA is the one of the largest shipbuilders in the United States. The Companyís 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.
This ASX announcement has been approved and authorised for release by David Singleton, Austal Limitedís Chief Executive Officer.
Image: Austal USA
Austal press release