Austal USA, Master Boat Builders ink MoU to expand shipbuilding capacity

September 8, 2025, by Fatima Bahtić

Austal USA and Master Boat Builders have signed a memorandum of understanding (MoU) establishing a strategic outsourcing partnership designed to expand U.S. shipbuilding capacity.

As disclosed, the partners plan to strengthen the domestic maritime industrial base and support the Trump Administration’s call for innovative approaches to accelerate delivery of essential platforms.

Specifically, under the MoU, the companies will collaborate on current programs under contract to Austal USA as well as on future efforts.

By distributing work across complementary facilities, Austal USA and Master Boat want to reduce bottlenecks, shorten production schedules, and create surge capacity for future demand. The firms also intend to co-invest in workforce development initiatives.

“This partnership is about expanding the shipbuilding industrial base in Alabama and the Gulf Coast,” said Michelle Kruger, Austal USA President.

“By aligning with Master Boat, a proven partner and quality shipbuilder, we can scale production, reduce schedule risk, strengthen supply chains, and deliver for the U.S. government while investing in American skilled workers and suppliers.”

“Shipyards like ours can and should be a force multiplier for the U.S. maritime defense industrial base,” said Garrett Rice, President, Master Boat Builders.

“Teaming up with Austal USA, we’ll add much-needed capacity and help get critical vessels delivered on time and on budget, contributing to a stronger, more resilient shipbuilding sector.”

All activities conducted under the MoU will adhere to Austal USA’s specifications and U.S. government standards, including rigorous quality assurance, appropriate cybersecurity controls, export-compliance requirements, and applicable Buy American provisions.

Initial pilot projects will be identified in the coming months, with phased implementation to follow, it was concluded.

To remind, last week, Austal USA launched the company’s first landing craft utility (LCU) vessel built for the US Navy at its ship manufacturing facility in Mobile, Alabama.