Austal has agreed to purchase 15 acres of waterfront land in Mobile, Alabama from Modern American Recycling and Repair Services (MARRS) to expand its shipbuilding and ship repair facilities in the US.
The expansion is being funded in part by the US Department of Defense (DoD), which has provided $50mn to build the $100mn steel shipbuilding facility near Austal’s existing aluminum shipbuilding plant in the US, the Australian shipbuilding firm said in a media statement on Friday.
Under the land acquisition agreement, Austal will purchase more than 15 acres of MARRS’ waterfront land. The shipbuilder will also buy the recycler’s existing dry docks and buildings on that land, which is across the river from Austal’s existing facilities.
The company indicated it was investing a little under $10mn in the acquisition of the new land that is still subject to the fulfillment of certain conditions. While Austal did not disclose those stipulations, it noted the transaction would be completed over the next few weeks.