Austal USA will build a new $200 million-plus expansion whether it wins major new military work or not, creating about 1,200 jobs. The company will break ground on its 700,000-square-foot modular shipbuilding facility, covering 16 acres near its current shipyard, in the third quarter of 2008. Here is the article from the Press-Register...
Austal to go ahead with expansion
Wednesday, December 12, 2007
By KAIJA WILKINSON
Business Reporter
Austal USA plans to go ahead with a $200 million-plus expansion of its Mobile River shipbuilding facility, whether it wins major new military work or not, company officials said Tuesday.
The shipbuilder expects to learn sometime in January whether it wins a preliminary, $3 million design contract for a high-speed troop transport ship.
The U.S. Navy is leading the purchasing process for the Joint High Speed Vessel program that could eventually involve at least eight ships -- five for the Army and three for the Navy and Marine Corps. Austal is one of five teams vying for the work.
Katie Dunnigan, a spokeswoman for Naval Sea Systems Command, said the first vessel is set for delivery to the Army in 2011. Congress appropriated $210 million in fiscal 2008 for the first ship, she said.
The vessels would be used for quickly ferrying military personnel and equipment within theaters, much as the Army already uses a fast ferry it leases from Austal USA's parent company, Austal Ltd. of Australia.
Austal USA has spent the last three years ramping up facilities and employment, largely on the promise of building a new breed of warship for the Navy. In 2004, Austal received $10 million from state and local governments to expand its Mobile River shipyard with the multibillion-dollar Littoral Combat Ship program in mind.
The Navy had said it wanted up to 55 of those ships, but cost overruns on the first two prototypes -- one built by a Lockheed Martin Corp. team in a Wisconsin shipyard and the second about 70 percent finished at Austal in Mobile -- has put the future of the program in doubt.
Congress earlier this year gutted the budget for the LCS, and the Navy has canceled contracts for vessels given to Austal and its partner, General Dynamics Corp., and the Lockheed team.
As recently as September, Austal USA said that could put its expansion on hold. But Tuesday, Bob Browning, Austal USA's chief executive, said the company will break ground on its 700,000-square-foot modular shipbuilding facility, covering 16 acres near its current shipyard, in the third quarter of 2008.
"The thing is, we see that sort of infrastructure improvement as an enabler to business that is able to support our Navy and commercial shipbuilding programs, as opposed to going out and building that facility as a consequence of winning the work," Browning said.
Tax abatements have already been approved to support the new construction, but this time, governments did not announce any cash incentives.
On May 16, the Mobile Industrial Development Board granted breaks to Austal on property and sales taxes, except those that benefit schools.
The breaks were said to be worth about $1.2 million over 10 years. The package expires in June 2009 if construction isn't complete, unless Austal asks for an extension.
In exchange, Austal agreed to hire 400 more workers, raising its total to 1,123 employees and maintaining that level for a period of time.
"Austal is solely financing the majority of the (modular manufacturing facility)," Browning said.
Bill Pfister, Austal's vice president of government programs, said Austal now has about 1,176 employees. The expansion, Browning said, could add nearly 1,200 more jobs.
Browning and Pfister said the company is striving to diversify its order book, hoping to add contracts for crew boats and offshore support vessels for the oil and gas industry to its military and fast ferry work.
(Press-Register reporters Jeff Amy and Sean Reilly contributed to this report.)
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The city needed those condos/retail 
Some people just don t want a change. 
looks great!..........Just think next month when Mardis Gras and the Senior Bowl happens at the same time. Out of towners will look up and say " WOW! is this Mobile? "
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