Austal holds ribbon cutting for three new facilities

MOBILE, Ala. (WALA) - There is more good news on the economic front for the City of Mobile.  

City, county and state leaders joined Austal USA officials to cut the ribbon on its newest facility.

Local leaders said it will bring more jobs to our area.

But at least one United States Senator is concerned budget cuts to the Department of Defense could put programs such as this in danger.

Now, the Littoral Combat Ship will be assembled in Mobile.

"The LCS represents exactly what we told the Navy it needed," said U.S. Senator Jeff Sessions, (R) Alabama.

U.S. Senator Jeff Sessions said the U.S. Navy wants 55 of these ships.

The design of the vessel is one of a kind and can accommodate troops, equipment and vehicles.

The Austal expansion has meant big business for our area.

“What does Austal mean to the City of Mobile?” Mobile City Council President Reggie Copeland asked. “It is priceless, not only with jobs, but with suppliers and in bringing recognition.”

Austal already employs 3,000 people. The expansion could mean an additional 1,000 jobs for the port city.

Sessions called Austal, south Alabama's largest employer. If all goes well, he said it could be the largest in the state.

 CEO of Gray Construction Contractor Stephen Gray thanked Austal for the work.

Gray Construction played a role in building the new facilities.  It was responsible for the 350,000 square foot additional manufacturing space and 30,000 square foot additional office space as well as a multi-purpose room, and office complex.

"We all know with the recession what that is like, and it was not fun. But recession reminded us of what we are thankful for today. Work is a blessing, so much thank to Austal," said Gray.

Thompson Engineering built an assembly bay.

The celebration comes at a time when the Department of Defense's budget is in jeopardy.

Sessions said it has already been cut by $500 billion, and it is danger of facing another round of cuts.

"We are in a tough time financially; and if sequester that is in place now, if that is not altered, I think we will be cutting defense way too much and could damage programs like this. We've got to get away from that," said Sessions.

Sessions said it will be a tough battle to keep the funding and ensure the Navy receives the 55 LCS's it wants.

Austal, USA won a contract to build 10 littoral combat ships for the U.S. Navy in 2010.

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