Austal USA announced today that it has inked an agreement to acquire 15 acres of waterfront in downtown Mobile from Modern American Recycling and Repair Services of Alabama. The acquisition is part of a $100 million expansion Austal announced in June.
Austal says it plans to use the site to further its move into steel ship construction and expand its repair capabilities. The MARRS site includes waterfront land, buildings and a drydock and offers Austal deepwater berthing capability.
Final details are still being worked out, but Austal says it plans to close the deal in the next few weeks. The price of less than $10 million will be paid from cash holdings, Austal says.
“Austal USA is the one of the largest shipbuilders in the United States,” the company said in a press statement today. “The Company’s manufacturing facility and headquarters is located on 164 acres of land on the Mobile River. MARRS is located across the river and will increase the ability of Austal USA to expand its aluminium, steel and repair operations in a vital part of the United States that boasts a rich tradition of shipbuilding and repair work.”
MARRS, with locations around the Southeast, dismantles barges and offshore structures.