HII Expands Shipbuilding Capacity Acquiring South Carolina Metal Fabricator

HII acquired the fabricator to expand its shipbuilding capacity for the U.S. Navy (W International)

Published Dec 4, 2024 5:21 PM by The Maritime Executive

 

 

To further expand production capacity and meet increased demands from the U.S. Navy, HII reported it has entered into a definitive agreement to acquire substantially all the assets of W International SC and Vivid Empire SC. The deal had been rumored for weeks as the shipbuilder looks to expand its fabrication capacity to support the Navy’s newbuild program.

The operation which goes by the name W International has a manufacturing facility approximately 400 miles south of the Newport News Shipbuilding facilities and specializes in the manufacture of shipbuilding structures, modules, and assemblies. The manufacturing facility in Goose Creek, South Carolina, will operate within HII’s Newport News Shipbuilding division as Newport News Shipbuilding – Charleston Operations.

“HII is committed to increasing build rates for our Navy customer, and this investment in capacity alongside the Navy will help us do that,” said HII President and CEO Chris Kastner. “It lets us efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent job of building ships, making it a unique opportunity to accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”

According to the company, the newly acquired facility will support the construction of nuclear-powered submarine and aircraft carrier modules and structures for U.S. Navy programs. Substantially all current employees will be offered positions with HII to continue to work on-site.

Jennifer Boykin, the current president of Newport News SB highlighted the priority is the submarine program. She reported demand for submarines has increased by up to five times versus a decade ago. She also anticipates the facility could be used for components of the new aircraft carriers building at Newport News. The company recently highlighted that it expects to begin simultaneous assembly of two Ford-class carriers in 2025.

The Navy has been supporting the shipbuilders in expanding their capabilities, including Austal’s recently announced deal to expand its submarine component efforts into a neighboring space at its yard in Mobile, Alabama. Austal is growing its business of supplying components to General Dynamics Electric Boat.

HII said the acquired assets include advanced production facilities with state-of-the-art equipment, tooling, and infrastructure used to fabricate complex metal modules and structures, and are located on a leased 45-acre site with more than 480,000 square feet of manufacturing space. The site has barge and rail access and is strategically located near Charleston, in a region with a rapidly growing shipbuilding ecosystem and highly skilled trades workforce.

NNS Vice President and Chief Transformation Officer Matt Needy has been named to become general manager of the new operation. The transaction is expected to close in the fourth quarter of 2024.