HII Books Fiscal 2023 Shipbuilding Project Under Navy's Multiyear DDG-51 Destroyer Procurement Contract

The U.S. Navy has exercised an option under a five-year shipbuilding deal with HII (NYSE: HII) to procure an Arleigh Burke-class guided missile destroyer in fiscal year 2023.

HII will provide DDG 51 construction, engineering change proposals, design budgeting and post-delivery services to the service branch, the Department of Defense said Friday.

The FY 2023 option is part of the six-vessel procurement award to HII’s Ingalls Shipbuilding division in early August.

Ingalls Shipbuilding is contracted to design and construct six DDG 51 class ships through fiscal 2027 and will aim to deliver the first ship to the Navy by February 2035.

Seventy-nine percent of FY 2023 services will occur in Pascagoula, Mississippi, and the remaining 21 percent in various other locations.

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