Australia-based Austal Limited on Monday evening announced the resignation of Craig Perciavalle, the president of its American subsidiary Austal USA.

In a written release, Austal said that his resignation follows the completion of an investigation conducted by external attorneys but commissioned by the company. That probe reportedly focused on what is believed to be at the center of still ongoing investigations “by US regulatory authorities (notably, the Department of Justice and the Securities Exchange Commission) and the Australian Securities and Investments Commission into historical matters concerning Austal’s Littoral Combat Ship (LCS) program before July 2016.”

Austal USA builds Independence-variant littoral combat ships at its world-class facilities in Mobile, Alabama.

Perciavalle was named president of the shipbuilder in 2007 and oversaw the company’s Coastal Alabama hub growing to employ more than 4,000 people. (more…)

Austal USA on Friday announced that it has completed the purchase of waterfront land, buildings and an existing dry dock along the Mobile River.

The purchased property and facilities were previously owned by World Marine of Alabama, an indirect subsidiary of Modern American Recycling and Repair Services of Alabama (M.A.R.R.S.).

In a release, Austal said this move enhances the company’s new construction and service business lines.

“As we’ve consistently done over the course of our history, we’re adding capability to meet the growing demand from our customers,” stated Austal USA president Craig Perciavalle. (more…)

Austal USA, a shipbuilder with a massive plant in Mobile, announced on Thursday that is has delivered its 12th expeditionary fast transport (EPF) ship for use by the United States Navy.

USNS Newport, the official name for the ship, is the 22nd total vessel Austal has delivered to the Navy in the last seven years, and the third in 2020 alone.

The Newport is a 338-foot high-speed catamaran in the Spearhead-class of EPFs.

Austal says that it “provides high-payload transport capability to U.S. combatant commanders around the world and adds incredible speed and versatility to the fleet.”
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Austal USA, a shipbuilding company in Mobile, announced Thursday that it has received a new contract worth $43,362,000 to perform needed work on littoral combat ships.

The $43 million announced Tuesday is an addition to a $584 million contract signed in 2017 to build a littoral combat ship for use by the United States Navy.

Austal USA President Craig Perciavalle released a statement saying that the Department of Defense choosing his company for the modifications “reflects the Navy’s ongoing confidence in Austal to perform quality work throughout the life cycle of the ship.”
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Mobile-based Austal USA celebrated two major milestones last week, with the company’s leader expressing optimism for continued success.

First, Austal USA on Tuesday delivered its 10th Independence-variant littoral combat ship (LCS) to the U.S. Navy.

This LCS, which will be the USS Cincinnati (LCS 20), will be the 18th LCS to enter the American fleet.

“It’s so exciting to deliver another great warship to the U.S. Navy,” Austal USA President Craig Perciavalle said in a statement. “I’m so proud of our incredible team here at Austal USA, our industry and Navy partners for achieving this major milestone for the future USS Cincinnati.” (more…)

By Kelli M. Dugan

MOBILE, Ala. — While the future funding of the U.S. Navy’s littoral combat ship program remains unclear, Austal USA shows no signs of altering its aggressive production plans at its Mobile shipyard.

In fact, the Australian shipbuilder’s U.S. headquarters on the Mobile River hosted a recent keel-laying ceremony for the future USS Tulsa.

Austal USA President Craig Perciavalle said he is amazed by how quickly the sixth Independence-variant LCS is coming together. Austal is building the ships under a $3.5 billion, 10-ship block buy contracted awarded in 2010.

“The speedy construction of this amazing ship is evidence of the rapid maturity of Austal’s LCS program, a testament to the extreme level of talent and experience displayed by Austal’s shipbuilding team,” Perciavalle said.

With roughly 4,000 employees, the shipbuilder is Mobile’s largest private employer.

During the Jan. 11 ceremony, ship sponsor Kathy Taylor, former Tulsa mayor and chief executive officer of ImpactTulsa, authenticated the keel by welding her initials onto an aluminum plate that will be placed on the hull of the ship.

Austal USA is fulfilling as prime contractor a $3.5 billion contract with the U.S. Navy alongside General Dynamics Mission Systems for 10 aluminum-hulled, Independence-class littoral combat ships. Lockheed Martin and shipbuilder Marinette Marine, meanwhile, are partnered to construct and outfit an equal number of steel-hulled Freedom-class variants.

To date, Austal-built Independence-variant ships USS Independence, USS Coronado and USS Jackson have entered service; Montgomery and Gabrielle Giffords are preparing for builders trials later this year; Omaha was christened Dec. 19; Manchester will complete final assembly and prepare for launch later this year; and modules for Charleston are under construction.

Meanwhile, Austal is building 10 Expeditionary Fast Transports, known as EPF, for the Navy under a separate $1.6 billion block-buy contract, the first of which for 2016 – USNS Brunswick – was delivered Thursday.

Austal Chief Executive Officer Andrew Bellamy called the milestone a testament to the dedication and skill of the local workforce.

“The EPF program is now mature and stable. The entire team at Austal USA has much to be proud of in achieving this. It’s a great ship and a great program,” Bellamy said in a prepared statement.

To date, five Austal USA-built EPFs – the USNS Spearhead, Choctaw County, Fall River, Millinocket and Trenton – have been delivered to the Navy with both the USNS Spearhead and USNS Millinocket deployed supporting naval fleet operations. The 338-foot-long aluminum catamarans are designed to be fast and flexible carriers of troops, equipment and humanitarian relief.

Three additional EPF remain under construction in Mobile, including the future USNS Carson City christened Saturday.

The ship is the Navy’s second to be named after Nevada’s capital, and the ceremony will feature ship sponsor Susan Asbury Crowell, the daughter of U.S. Air Force Col. Robert Asbury and wife of Capt. Robert Crowell (USN-Ret.).

RELATED: U.S. Navy awards Austal USA $53.4 million contract to build more ships in Mobile

Meanwhile, modules for the future USNS Yuma and USNS Bismarck are under construction, and work will begin on the future USNS Burlington before year’s end.

MOBILE, Ala. – Austal, a global defense contractor, designer, and manufacturer of defense and commercial ships, was awarded a $53.4 million contract to procure long-lead materials for the 11th Expeditionary Fast Transport for the U.S. Navy.

The award covers materials including main propulsion engines, generators, water jets, main reduction gears, and other long-lead time items.

“We are excited that the Navy is building on the momentum and the maturity of the original contract and extending it beyond the first ten ships,” said Austal USA President Craig Perciavalle. “We look forward to building on Austal’s relationship with the U.S. Navy by continuing to provide quality, value and capability in our ships.”

This award comes after Austal delivered its third state-of-the-art, Mobile-built combat ship to the U.S. Navy this year.

Austal was awarded a $1.6 billion contract in November 2008 that initiated the Navy’s Joint High Speed Vessel (JHSV) program. The 2008 contract was set for Austal to build 10 joint high speed vessels for the U.S. Navy, with five JHSVs having currently been delivered while an additional three are in various stages of construction.

However, the Navy is now extending the original contract and providing funding to initiate procurement of long-lead materials for Expeditionary Fast Transport (EPF) ships. The structure of the EPF provides the opportunity to conduct a wide range of missions, from humanitarian efforts and disaster relief to the possibility of special operations support, command and control. The 338-ft Spearhead-class EPF is currently providing high-speed, high-payload transport capability to fleet and combatant commanders.

Perciavalle believes that the success of Austal is a result of the Austal Alabamian employees. Previously, Perciavalle has raved about the advantages of doing business in the state of Alabama. Austal employs approximately 4,000 Alabamians in the Mobile area, and Perciaville says that the Navy’s $53.4 million award is evidence of their hard work.

“Due to the level of maturity this program has reached, and the efficiency of our material procurement to date, we have earned the Navy’s confidence to make this award,” said Perciavalle. “This is a testament to the hard work of Austal’s awesome employees building incredible ships.”

https://twitter.com/caseycappa/status/634418932192030720

WASHINGTON, D.C. – U.S. Sen. Richard Shelby (R-Ala.), Vice Chairman of the Senate Appropriations Committee, today announced full committee passage of the Fiscal Year 2015 Department of Defense Appropriations bill, which contains funding for ships being built by Austal USA at its Alabama manufacturing facility.

The bill will now go to the full Senate for consideration.

“The Department of Defense Appropriations bill funds defense-related programs that play a vital role in providing our nation’s military with the resources that they need to strengthen our national security,” said Shelby. “I am pleased that this bill includes funding to enhance Alabama’s national defense capabilities and continue our state’s commitment to serving our armed forces.”

The bill fully funds three Littoral Combat Ships (LCS), with an additional $80 million over and above the President’s budget request for advanced funding for a fourth ship.

“LCS is extremely important to our Navy’s ability to maneuver in shallow waters and to combat the threats of surface craft, submarines, and mines,” said Shelby. “In addition to the three LCS provided in the President’s budget, the $80 million in additional funding allows for long-lead procurement in order to maintain shipyard capacity and cost savings. Adequate funding for LCS capabilities is essential to ensuring that our naval fleet is the best in the world and that our armed forces receive the equipment they need in order to execute future operations.”

The bill also appropriates $200 million above the president’s budget request for an eleventh Joint High Speed Vessel (JHSV). Both the Independence-class LCS and JHSV are built at Austal USA in the port of Mobile.

“JHSV is an incredibly flexible vessel that can rapidly and simultaneously transport troops, equipment, and supplies,” said Shelby. “The funding approved by the Committee today provides an additional JHSV, which will support efforts to decrease land-based choke points and maintain unit integrity.”

Sen. Jeff Sessions added that he believes the appropriation is “a strong affirmation of the program in a time of tight budgets.”

“I am very pleased with the work of Senator Shelby and the Senate Appropriations Committee in providing funding for the Littoral Combat Ship,” he said. “This is a great ship and a key part of the Navy’s future. I have advocated for it for many years. We must keep it on-track.”

The Austal plant is located in Alabama’s 1st Congressional District, which is represented by Republican Rep. Bradley Byrne. On Thursday, Byrne applauded the actions of the Senate Appropriations committee and his Alabama colleagues Sen. Shelby.

“Today’s action in the Senate represents one more step in the appropriations process, and a positive development for the LCS program. I appreciate Senator Shelby and the Senate Appropriations Committee for recognizing the value the LCS adds to our Navy’s capabilities.

Byrne previously worked to include language in the National Defense Authorization Act, which passed the House in May, that authorizes construction of four Littoral Combat Ships. The House Defense Appropriations Act only appropriated funding for two ships. The House and Senate will work out the differences in a joint Conference Committee later this year.”

A final Defense Appropriations Act, along with the other eleven appropriation bills, must be passed by the end of the current fiscal year on September 30.

Austal USA currently employs over 4,000 Alabamians. For more on Austal’s Alabama operation, check out Yellowhammer’s Exchange interview with Austal USA President Craig Perciavalle.

Follow Cliff on Twitter @Cliff_Sims

Rep. Bradley Byrne, R-AL01, will host the third-ranking House Republican in Mobile, Ala. next week for a tour of Austal USA.

House Majority Whip Kevin McCarthy will visit the shipyard, which is currently building the Littoral Combat Ship for the U.S. Navy.

“As the House Majority Whip, Congressman McCarthy has broad influence within the Republican Conference, entrusted with the responsibility to inform Members on how to build a conservative voting record,” Byrne explained. “By hosting Congressman McCarthy at the Austal USA shipyard in Mobile, we can demonstrate the importance of the Littoral Combat Ship to the future of the U.S. Navy, and the jobs that are hosted here in Southwest Alabama, to this important decision maker. We have a great story to tell, and I am excited to showcase this important part of our community to Congressman McCarthy.”

McCarthy is a key member of the House leadership structure, ranking just below Speaker of the House John Boehner and House Majority Leader Eric Cantor.

McCarthy’s role is one made famous in popular culture by Kevin Spacey’s portrayal of Congressman Frank Underwood in the Netflix original series “House of Cards.” Underwood was the House Majority Whip in Season 1 of the series.

Underwood’s line, “Vote your district. Vote your conscience. Just don’t surprise me,” is widely believed to have been directly lifted from McCarthy, who Spacey spent some time with preparing for the role.

The importance of having a key House leader like McCarthy on board with Austal’s mission in Mobile cannot be overstated. The Littoral Combat Ship program has been clouded by some uncertainty, due in part to deep defense cuts implemented by the Obama Administration.

Austal USA President Craig Perciavalle told Yellowhammer several weeks ago that Alabama’s congressional delegation has been instrumental in protecting the LCS program, and the 4,000 jobs it currently supports in South Alabama.

“I’ve been in this position for a little over a year now and the appreciation that I have for what they do has just gone beyond my imagination,” Perciavalle said of Alabama’s congressmen and senators. “They provide a tremendous amount of support for us — both with state support with supporting the operations, as well as support on the Hill.”

To see Yellowhammer’s full interview with Perciavalle, check out “The Exchange.”

Follow Cliff on Twitter @Cliff_Sims

(Above: Yellowhammer News CEO Cliff Sims interviews Austal USA President Craig Perciavalle)

Craig Perciavalle kicked off 2013 by becoming President of Austal USA, America’s largest aluminum shipbuilding company, with roughly 4,000 employees in Mobile, Ala. A little over a year later, he’s leading the company through a period of unprecedented growth and cranking out the most advanced ships the U.S. Navy has ever had in its fleet. Austal is currently building Joint High-Speed Vessels (JHSV) and Littoral Combat Ships (LCS), both of which are so fast that their top speed is classified.

Mr. Perciavalle sat down with Yellowhammer CEO Cliff Sims this week for The Exchange, a regular feature in which Yellowhammer discusses current events and other topics with a state or national business leader or political figure, or notable Alabamian.

RELATED: The Exchange ft. Special Guest Steve Forbes

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Did you know Sen. John McCain, R-Ariz., tried to kill the Littoral Combat Ship, but Sen. Richard Shelby, R-Ala., saved it? Did you know the most advanced ships in the Navy are being run on Microsoft Windows? Find out about that and so much more — including what’s making Alabama so attractive to companies around the world — by watching the video above.

Here are some of the top quotes from this week’s sit-down with Austal USA President Craig Perciavalle.

On what it’s like to operate the Navy’s most advanced ships:

The command infrastructure on the ship is Windows based. It basically looks like you’re looking at your desktop in your office. It’s got all the permissions and all the security features that are necessary to be in a military environment. But at the end of the day, it enables us to upgrade the systems on the ship, or ‘plug-and-play’ other weapons or other mission packages on the ship much more easily than a traditional Navy ship has been able to do in the past.

On working with Alabama’s Congressional delegation:

It’s phenomenal… I’ve been in this position for a little over a year now and the appreciation that I have for what they do has just gone beyond my imagination… They provide a tremendous amount of support for us — both with state support with supporting the operations, as well as support on the Hill.

On an Alabama-built ship making it into a Disney movie that made a half-billion dollars at the box office:

It’s the LCS Independence. It’s Tony Trihull in the Cars 2 Movie. We didn’t know it was going to happen. We had some employees that were sitting in the movie theater and they were like, ‘Holy cow, that’s our ship!’

On what’s making Alabama so attractive to companies right now:

First and foremost is the support the state gives industry here. They realize they need to provide support for companies to have them move to the area and grow the economics of the state. That’s been tremendous for us with AIDT training. We get a lot of support with that. We’ve had some support in the facility growth that we’ve had — both from the county, the City of Mobile and the State of Alabama. That partnership between the State of Alabama and industry is really second to none from what I’ve seen… That’s the main reason why people are attracted to come into the state… That’s just going to make the state of Alabama grow into an incredible economic powerhouse going forward.

On Austal employees rejecting unionization 3 times and Alabama’s status as a right-to-work state:

That’s probably the second leading attractive part of being in the State of Alabama — a right to work state… We focus on treating our employees right and creating a very good work environment for them.

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(Above: Austal USA President Craig Perciavalle visits “The Exchange”)

Yellowhammer CEO Cliff Sims sat down with Austal USA President Craig Perciavalle yesterday to discuss a wide range of issues — from how Sen. Richard Shelby, R- Ala., saved the Littoral Combat Ship (LCS) to the fact the LCS inspired a character in Disney’s Cars 2, which brought in over a half-billion dollars at the box office.

Perciavalle raved about the advantages of doing business in the state of Alabama. Austal employees approx. 4,000 Alabamians in the Mobile area. He said the state will likely continue to attract international companies like Austal and Airbus who are looking for a low-tax, business-friendly place to do business in America.

But there were two specific things Austal’s president mentioned that make Alabama an especially attractive place to locate. One of them is Alabama’s status as a right-to-work state.

“That’s probably the second leading attractive part of being in the state of Alabama — a right-to-work state,” Perciavalle said. “At the end of the day, we focus on treating our employees right and creating a very good work environment for them.”

Austal employees have voted to reject three attempts by the Sheet Metal Workers’ Union to unionize the plant — in 2002, 2008 and most recently in 2011.

Want to find out what Perciavalle believes is the most attractive part of doing business in Alabama? Come back to Yellowhammer Sunday morning to see Perciavalle’s complete interview in “The Exchange.”

RELATED: The Exchange ft. Special Guest Steve Forbes

Follow Cliff on Twitter @Cliff_Sims