Austal is likely to build two more joint high speed vessels (JHSV) for the US Navy after it exercised contract options to fund a long lead-time equipment associated with the construction of two additional 103 metre JHSV.

The $121 million contract option will fund long lead-time material for JHSV 4 and 5 will include main propulsion engines, water jets, reduction gears and other major equipment items.

"This award reinforces the US Navy's support for this major US defence programme and provides a clear signal that options 4 and 5 will be taken up," said Austal Managing Director Bob Browning.

Austal currently has contracts to build the first three JHSV as part of a 10-vessel program valued up to $2 billion.

The initial contract to design and build the first JHSV was awarded to Austal in November 2008. Contracts for an additional two vessels were awarded in January.

According to Austal options for the remaining seven vessels are expected to be awarded between 2010 and 2013.

Each JHSV is estimated to be worth $225 million.

"This award signifies the US Navy's continued commitment to the JHSV programme and confidence in Austal's ability to reliably deliver the predecessor ships on time and budget. The long lead-time material contract award also ensures employment continuity for our US workforce," said Austal USA President and COO Joe Rella.

The JHSV will be capable of transporting troops and their equipment, supporting humanitarian relief efforts, and reaching speeds in excess of 35 knots fully loaded. The vessels will be a joint-use platform operated by both the United States Army and Navy.

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