Master Boat Builders Inc., Coden, Ala., has signed a contract with Austal USA to fabricate hull modules for the U.S. Navy’s Navajo-class towing, salvage and rescue ship (T-ATS) program, expanding the yard’s role in defense shipbuilding.
The agreement marks Master Boat’s first formal production contract under a broader outsourcing partnership with Austal USA and positions the company as a subcontractor supporting construction of the Navy’s next-generation auxiliary vessels. The work aligns with ongoing federal efforts to expand domestic shipbuilding capacity through distributed production across regional yards.
Under the contract, Master Boat will fabricate two hull modules at its Coden facility, about 30 miles from Austal USA’s Mobile, Ala., shipyard. The modules will be built to Austal’s production design and Navy specifications before being transported to Mobile for final assembly and outfitting.
The contract builds on a memorandum of understanding (MOU) signed by the two companies in September 2025 establishing a strategic outsourcing partnership aimed at expanding U.S. shipbuilding capacity. The agreement outlines a framework for distributing work across regional shipyards to reduce bottlenecks, increase production flexibility, and create surge capacity for government programs. It also includes plans for joint workforce development initiatives and requires all work to meet Austal USA specifications and U.S. government standards, including quality assurance, cybersecurity, and Buy American requirements.
“This contract is a direct result of the partnership we built with Austal USA last year, and it validates what we’ve been saying all along – regional shipyards like ours can take on complex defense work and deliver,” said Garrett Rice, president of Master Boat Builders. “We’re not competing with the major yards. We’re adding capacity that the Navy needs right now.”
Austal USA said the arrangement is intended to increase throughput and reduce schedule risk while strengthening the Gulf Coast industrial base.
“Master Boat has proven itself as a capable and reliable partner, and this contract is a natural next step in our collaboration,” said Gene Miller, interim president of Austal USA. “By distributing module fabrication to a qualified yard right here on the Gulf Coast, we’re expanding throughput, reducing schedule risk, and strengthening the industrial base that supports our warfighters.”
The work will also give Master Boat experience operating within U.S. Navy technical standards and production requirements associated with large-scale programs.
The contract follows Master Boat’s plan to build a $60 million, 150,000-sq.-ft. manufacturing facility dedicated to government and defense work. Located across Bayou Coden from its existing yard, the 20-acre site is designed for serial production of steel and aluminum vessels and modules for Navy and Coast Guard programs.
Announced in December 2025, the facility will take an estimated 18 to 24 months to complete and will include a 150,000-sq.-ft. covered assembly building, expanded workforce training areas, and infrastructure to support modular construction. The yard is expected to support programs including the Navy’s Landing Craft Utility (LCU) program and position the company for future work such as the Coast Guard’s domestic icebreaker program. Until the new facility is complete, T-ATS modules will be fabricated at Master Boat’s existing yard.
Master Boat has also expanded its near-term production capabilities with the delivery of a 155’x66’ floating drydock from Conrad Shipyard. The dock, equipped with 41’ wing walls and a 2,000-ton lifting capacity, enables the company to launch vessels directly from its facility along the Theodore Industrial Canal. Previously reliant on third-party yards for launch, Master Boat said the addition provides greater control over scheduling and improves overall production efficiency.
Master Boat employs more than 400 workers in Coden and expects the new facility to add about 200 jobs. The company and Austal USA said they are continuing to invest in workforce development programs aimed at training shipbuilders along the Gulf Coast.
The Navajo-class T-ATS vessels are being built to replace aging fleet ocean tugs and rescue and salvage ships. The 263’ ships are designed for missions including open-ocean towing, salvage and recovery, diving support, and humanitarian assistance and disaster response. Austal USA has launched the first two vessels in the class as construction progresses.
