-
Posted by David Sexton
- |
-
9 October, 2025
ENHANCING Austal’s US construction capacity is the focus of a $100m loan from Export Finance Australia (EFA).
The money is to be directed towards work on ships for the US Navy and US Coast Guard at the company’s shipyard at Mobile, Alabama.
The EFA loan to support the development of Austal’s Final Assembly 2 project was credit approved, but subject to completion of finance documentation, when Austal announced its A$488 million refinance package in late June 2025 and was included in that total package, hence this total refinancing amount remains unchanged.
With the documentation now signed, Austal is expected to use the money to assist in funding construction of its Final Assembly (FA2) project.
The EFA loan tenor is for 10 years.
Work is to start with up to eleven US Coast Guard Offshore Patrol Cutters and up to seven US Navy Ocean Surveillance vessels.
“Securing Australian government funding for our US infrastructure expansion is a major milestone for Austal, enabling the company to execute on its $13.1 billion order book,” said Austal chief executive Paddy Gregg.
“It also facilitates the shared defence objectives between the Australian and US governments and validates the relationship that exists between both governments and Austal, building on the recent Strategic Shipbuilding Agreement signed by Austal and the Australian government.”
Australia trade minister Don Farrell said the government was supporting Australian defence companies to grow and export their world-class capabilities.
"Austal's expansion shows the strength of Australian businesses to export, invest and support shared Australian-US priorities such as defence,” Senator Farrell said.
Austal has stated that it continues to invest in its shipbuilding and submarine capabilities with two major expansion projects currently underway in the USA, the FA2 project and the submarine Module Manufacturing Facility 3 (MMF3) project.
“Austal is undertaking a significant capital expansion in the US, and the working capital funding we have established, which comprises a combination of debt, equity and cashflow, ensures that we can complete that expansion in a financially astute manner,” Mr Gregg said.
