On Eastern Shipbuilding Group, Inc. (ESG) announced an agreement with HII’s Ingalls Shipbuilding Division to support the limited production of outfitted structural units for the U.S. Navy’s Flight III Arleigh Burke-class (DDG 51) guided missile destroyers.
Due to labor shortages, the progress of HII’s high-specification naval vessel projects has fallen behind schedule, prompting the U.S. Navy to push for accelerated production. One approach involves subcontracting the construction of hull sections to partner shipyards, as exemplified by the Royal Navy’s Queen Elizabeth-class aircraft carrier program—which relies on subcontractors across the UK to build individual structural units.
Building on the success of a recent pilot program in which ESG constructed a limited number of DDG units at its Nelson Street Facility in Panama City, Florida, the two companies have entered into an agreement that supports the expansion of the domestic industrial base and advances the U.S. Navy’s surface combatant fleet.
According to the U.S. Naval Institute (USNI), HII’s initial outsourcing contract was limited to simple hull units, with complex hull structures and precision equipment continuing to be built at its own shipyards. The massive hull sections constructed by ESG were transported via deck barges to Ingalls Shipbuilding in Mississippi after being sealed with plastic (similar to superyacht transport methods).
“With nearly fifty years of experience delivering some of the most reliable and highest-performing steel and aluminum vessels, we’re proud to partner with HII to support production of the U.S. Navy’s destroyer fleet,” said Joey D’Isernia, CEO of Eastern Shipbuilding Group, Inc. “This collaboration strengthens our national shipbuilding capability—expanding industrial capacity and enhancing our nation’s competitive advantage.”
The collaboration allows ESG to leverage the company’s expertise, resources, and capabilities, ensuring that the U.S. Navy receives the necessary vessels to maintain its global readiness and superiority. With the growing demand for advanced naval vessels, this alliance provides a much-needed boost to America’s shipbuilding capacity.
ESG is making investments to support these goals and is scheduled to complete a significant infrastructure improvement project at its Nelson Street government shipbuilding facility this summer. The expansion will significantly increase ESG’s capability to construct and deliver multiple ships per year.
Currently, HII’s outsourcing operations have expanded beyond the Gulf Coast, with its Newport News Shipbuilding collaborating with multiple new subcontractors to construct aircraft carrier and submarine components. HII stated: “This evolution toward a more decentralized shipbuilding model will expand the production scale of next-generation vessels.”