Expanded Mobile manufacturing facility and Constellation Frigates

ASB released a press release on their website

https://www.austalusa.com/news/new-facility?fbclid=IwAR0Xk1APgcYXIEx5MGY5pNeTYZCq8PbzqwhsCE4DNgnNgu1zuGyj90qtgYo

Regarding the construction of an assembly building being 400 feet long by 480 feet wide providing over 192,000 square feet of covered manufacturing space occupying four and a half acres. Austal have partnered with Pearlson to deliver a Pearlson-designed shiplift system will feature an articulated lifting platform approximately 450 feet long by 125 feet wide, capable of lifting and launching vessels in excess of 18,000 long tons.

The press release notes that the capacity will facilitate the launch and docking of the U.S. Navy Constellation-class Frigates, TAGOS-25 class Ocean Surveillance Ships, Independence-variant Littoral Combat Ships, and the U.S. Coast Guard Heritage-class Offshore Patrol Cutters.

The press release seems a strong indicator that the company has a good probability of being awarded the second yard contract for manufacture of Constellation class FFG-62 Frigates, which are currently under manufacture by FMM.

For comparison, a 10 ship contract for FFG-62s would likely be worth in excess of $11B and Austal's whole order book is at $11.4B to date (including exercise options).

Releasing this info about a huge cap ex project to me also indicates that the company is in a good posiiton after the most recent half year results ending 31 December 2023. The press release doesn't mention how ASB is going to finance this expansion, but the lack of detail there is hopefully explained at the mid year general meeting and some indication of whether it is going to be debt financed, or the company is going to be bought out by Cerebrus or JF Lehmann may come to light. This new expansion doesn't seem to be accompanied with a big federal subsidy like the last $50M Uncle Sam kicked the company.

Exciting times ahead.