Austal USA, the American subsidiary of Australian shipbuilding giant Austal, announced a $400 million investment to construct a state-of-the-art submarine module manufacturing facility in Mobile, Alabama. The new facility is expected to create 1,162 jobs and significantly bolster the U.S. Navy’s submarine production capabilities, according to company and local government officials.

The 369,600-square-foot facility will reportedly feature material storage areas, machine shops, assembly zones, and enhanced waterfront infrastructure for transporting completed modules by barge. Once operational, it will support the fabrication, outfitting, and delivery of critical submarine components.

The new site will support the Navy’s goal of delivering one Columbia-class and two Virginia-class submarines annually, helping to meet increasing demands for advanced undersea capabilities.

Local officials praised Austal’s investment as a significant boost to Mobile’s economy and workforce. “Austal’s ongoing expansion in Mobile is a testament to the skill and dedication of our local workforce,” said Mobile Mayor Sandy Stimpson. “This Module Manufacturing Facility will bring additional jobs to Mobile, boost the local economy, and enhance U.S. Naval defense capabilities.”

“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,” said Alabama Governor Kay Ivey. “This new facility for submarine module manufacturing reinforces Austal’s vital role in delivering the advanced capabilities required by these vital submarine programs.”

The facility’s construction will begin in the fall of 2024, with completion expected by 2026.