HII Expands Submarine Module Production with Acquisition of W International in Charleston

Charleston, South Carolina: HII Acquires W International for Submarine Module Construction

Navy shipbuilder HII has announced plans to acquire “substantially all” assets of the South Carolina-based metal fabricator W International. This acquisition is aimed at supporting the construction of submarine modules, a crucial element in the United States Navy’s ongoing efforts to enhance its submarine industrial base.

Who is Involved?

The deal primarily involves HII, a major player in naval shipbuilding, and W International, a fabricator that has been operating out of Charleston. HII is widely recognized for its Newport News Shipbuilding facility, known for constructing aircraft carriers and working with General Dynamics Electric Boat on submarine projects. With this acquisition, HII plans to expand its capabilities significantly in the realm of submarine construction.

What is Happening?

HII plans to use W International’s facilities to begin producing submarine modules as early as next year. The company is set to acquire 480,000 square feet of manufacturing space, situated on a 45-acre site in Charleston, alongside access to vital transportation links like barge and railway lines. This setup will facilitate the smooth transport of completed modules back to either Newport News or General Dynamics Electric Boat for further assembly.

Where and When Will This Take Place?

The acquisition is scheduled to close in the fourth quarter of 2024, contingent upon receiving regulatory approvals. The W International facilities are located in Charleston, approximately 400 miles south of HII’s Newport News Shipbuilding site. With the construction of submarine modules expected to commence next year, this strategic development is aimed at increasing HII’s production capabilities.

Why is This Acquisition Significant?

HII President and CEO Chris Kastner emphasized the company’s commitment to increasing build rates for the Navy, stating that this acquisition will facilitate an efficient addition of trained talent and cutting-edge manufacturing capabilities. This move is part of a broader industry effort to bolster the Navy’s submarine construction capacity. The U.S. Navy has acknowledged an urgent need to reinforcement its submarine workforce and infrastructure, aiming to recruit closer to 140,000 shipyard workers over the next decade, up from an initial goal of 100,000.

Jennifer Boykin, the outgoing president of Newport News Shipbuilding, also noted that submarines will be the primary focus initially. However, she sees potential for expanding operations in the future due to the facility’s considerable size, which could include building units for aircraft carriers.

The acquisition aligns with various initiatives by the Navy to strengthen its shipbuilding industry. Recently, the Navy has been collaborating with BlueForge Alliance, a Texas-based non-profit, to enhance recruitment efforts in the shipyard sector. Furthermore, a recent agreement with Austal USA has been established to purchase and develop land in Mobile, Alabama, dedicated to submarine module construction, indicating a growing interest from multiple parties in bolstering this critical industry.

What Lies Ahead?

As HII prepares to finalize this acquisition, the focus will be on integrating W International’s capabilities and workforce to meet immediate and future demands in submarine construction. With the ever-evolving landscape of naval defense, this acquisition could serve as a significant step towards reinforcing the U.S. Navy’s submarine fleet and overall maritime readiness.