Huntington Ingalls Industries, Inc’s (NYSE: HII) Newport News Shipbuilding has acquired the contract of $2.2 billion. General Dynamics’ GD Electric boat unit has granted this contract to continue the production of two Columbia-class ballistic missile submarines. Huntington’s unit has commenced the production activities on the ballistic missile in May 2019.
Increasing geopolitical issues have encouraged the US and other nations to strengthen their strategic power by updating their submarines. HII is enjoying benefits as a Navy Contractor in the US as the demand for submarines increasing continuously.
As per the deal, the Newport News unit of HII will offer design support efforts, as well as the production and shipment of six module sections for each of the first two Columbia-class submarines. The modules will be provided in November 2022, and the last module will be provided by January 2028.