Austal USA launches second growth project in Mobile, eyes 2,000 new jobs – Made in Alabama

MOBILE, Alabama — Austal USA, a cornerstone of Alabama’s thriving defense industry, has commenced the construction of a cutting-edge submarine module manufacturing facility (MMF3) in Mobile. This expansion marks another milestone in the company’s ongoing efforts to support the U.S. Navy’s submarine programs, further enhancing Alabama’s role in national defense.

The facility, spanning 369,600 square feet, is designed to manufacture structural assemblies for Columbia-class and Virginia-class submarines, critical components of the U.S. Navy’s fleet.

With advanced technologies under the Industry 4.0 concept, the new facility will be operational by late 2026, increasing Austal’s capacity to meet the growing demands of the U.S. Navy’s Submarine Industrial Base (SIB).

When combined with another expansion project announced just months ago, the MMF3 project is expected to create 2,000 jobs, further cementing Austal USA’s position as a major employer in Alabama.

The two projects involve combined investments totaling $750 million.

The expansions represent a massive economic boost to the state, especially Mobile County, where 72% of Austal’s production workforce resides. In 2023, 259 Alabama-based suppliers contributed over $115 million to Austal’s projects, including over 185 small businesses.

Governor Kay Ivey celebrated the project’s economic and strategic importance.

“Austal USA’s continued expansion in Mobile is a testament to Alabama’s growing leadership in the defense industry and our commitment to supporting our nation’s security needs,” she said.

“The creation of 2,000 jobs and the investment in cutting-edge manufacturing technologies further demonstrates Austal’s dedication to both Alabama’s economy and our national defense.”

Growth plans

The official start of the MMF3 project was marked with a groundbreaking ceremony at the Austal shipyard on Wednesday.

Austal USA’s latest investment follows another groundbreaking project from earlier this year, which supports the construction of large steel modules for Navy and Coast Guard ships.

This continued growth underscores the company’s strategic role in Alabama’s defense industry, fueled by strong partnerships with local and state entities.

Austal USA President Michelle Kruger emphasized the company’s commitment to national security and workforce development.

“The key to our success is the strong partnerships we have built with not only our customers but also our employees and the amazing community surrounding us,” Kruger said.

“We are grateful for the unending support we continue to receive from the city and county of Mobile and the great state of Alabama.”

Ellen McNair, Secretary of the Alabama Department of Commerce, said the company’s contributions are poised to further Alabama’s growing stature as a leader in both advanced manufacturing and national defense.

“Austal USA’s new manufacturing facility is not just a significant boost for Alabama’s economy, but also a clear example of how our state is contributing to critical national defense initiatives,” Secretary McNair said.

“The integration of advanced manufacturing technologies in this new facility will further solidify Alabama’s position as a leader in the defense industry, ensuring that we remain at the forefront of innovation while supporting thousands of high-quality jobs in the Mobile area,” she added.