Austal USA announced yesterday that it will assume the lease of Marine Group Boat Works in the Port of San Diego. Austal, Mobile, Ala., and Marine Group Boat Works, Chula Vista, Calif., are entering a 45-day exclusive period to close the agreement.

Austal USA will use the 15-acre site to focus on ship repair for Navy, Military Sealift Command and Coast Guard vessels. The site, immediately adjacent Naval Base San Diego, will include a new drydock designed specifically to handle small surface combatants and other small-to-medium-sized ships. Marine Group Boat Works will focus on its yacht repair business in its Chula Vista shipyard.   

“This investment marks a major milestone in Austal’s focus on growing our services business and anchors our commitment to servicing Navy, Military Sealift and Coast Guard ships in the INDO-PACOM region," Austal USA President Rusty Murdaugh said in a statement. "This facility expands our commitment to our customers to ensure they are receiving the Austal USA brand quality throughout the lifecycle of the ships we deliver."

Austal will establish a full service ship repair capability providing maintenance and modernization for small surface combatants, autonomous vehicles, and other vessels, the company said. Services include technical and material support, topside work, and dry docking availabilities.