Impact of $38 million Bayou La Batre shipyard upgrade goes beyond 130 new jobs

A move to expand a Bayou La Batre shipyard's capabilities - and its workforce - with a $38 million investment is part of a wave that has been building for at least two years.

On Thursday, international shipbuilder Birdon provided an update on its plans for the former Metal Shark Boats yard it recently acquired in Bayou La Batre. It said that the plans include a new 65,000-square-foot vessel fabrication center housing a "revolutionary" new welding system purchased with help from the U.S. Department of Transportation.

Local officials celebrated the plan, which also is supported by Mobile County tax incentives. A representative of the Mobile Chamber said that Birdon was granted a 50% abatement of non-educational ad valorem taxes for five years, with an estimated value of $427,172, and a 50% abatement of non-educational sales and use taxes during construction, with an estimated value of $462,450.

The Chamber issued a statement saying that the work would add 136 new jobs, bringing the yard's workforce to more than 200. "Birdon's decision to invest in Bayou La Batre is a testament to the strength of our local workforce," Mobile Chamber President and CEO Bradley Byrne said in that statement. "This expansion will have a significant impact, provide good-paying jobs and reinforce our region's role in the maritime industry."

"We are thrilled to welcome Birdon's expansion and the many opportunities it will bring to our city," said Bayou La Batre Mayor Henry Barnes, quoted in the same statement. "This development reaffirms Bayou La Batre's position as a vital hub for shipbuilding and marine innovation, and we look forward to a bright future together."

"This significant investment by Birdon is not just a boost to the local economy but a strong endorsement of our workforce's capabilities and resilience," said Mobile County Commission President Randall Dueitt, also quoted in the Chamber news release. "The creation of these new jobs and the expansion of our maritime infrastructure will have a lasting impact in Bayou La Batre and south Mobile County. We're proud to be part of this exciting chapter."

Birdon describes itself as "a diversified group of companies providing whole of life solutions to the maritime, military and resource sectors." It is a family-owned company with major operations spread across the United States, Europe, Asia and Australia, which is where it was founded.

In October 2022 , Birdon announced that it had been awarded a $1.187 billion contract to design and build 27 Waterway Commerce Cutters (WCCs) for the U.S. Coast Guard. The WCC contract covers two related types of ship: River Buoy Tenders and Inland Construction Tenders. The company said that both are "complex, modern, and designed to military standards ... [and are] expected to provide up to 11 days of accommodation and habitability for up to 19 crew members."

The two variants of WCC are used to maintain and protect 12,000 miles of intra-coastal and inland waterways, according to Birdon. The job includes maintaining more than 28,000 navigation aids, though the ships may also be used for other missions such as search-and-rescue, environmental protection and security. According to information provided by Birdon, the ships currently doing the job have an average age of 58 years .

In July 2023 , Birdon announced the first wave of major subcontracts, ranging from $10 million to $50 million. Most were based on the Gulf Coast and two were in Alabama: Kern Martin Services in Coden and Hiller Marine in Mobile. Hiller Marine specializes in fire protection; Kern Martin's specialties include marine interiors and living quarters.

A Birdon announcement at the time quoted Emmett Kern, president of Kern Martin, as saying the contract would "sustain and grow jobs."

"Our company's roots began from a small family-owned business in 1979 servicing Bayou La Batre and surrounding areas," Kern said. "The company has grown from our humble beginnings, and now services projects from Florida to Texas. Our team and the local community are excited about the award of the interior joiner contract for the Waterways Commerce Cutter (WCC) vessels. ... Our specialty is 65-foot to 250-foot offshore and inland work boats. The WCC vessels are right in our wheelhouse."

"We appreciate the trust that Birdon has placed in us to continue this practice with the WCC project," Kern said. "We look forward to partnering with Birdon to complete these vessels for the U.S. Coast Guard."

Word of another local impact landed in August 2023 , when Birdon said that it had chosen Master Boat Builders, a yard in Coden, to build superstructures for the program. "We are excited to announce our partnership with Birdon America and honored to be part of the WCC program team," said Master Boat Builders President Garrett Rice, quoted in the Birdon announcement. "This is an important opportunity for our employees as it will create new sustainable jobs and additional shipbuilding capability and capacity in Coden, AL. We are proud to play a key role in delivering the highest quality cutters to the U.S. Coast Guard."

Birdon did not announce the specific value of the contracts with the three Alabama companies.

News of the biggest local impact yet came in February 2024, when Birdon revealed that it had sealed a deal to purchase the 32-acre Metal Shark Boats shipyard in Bayou La Batre.

The deal also was a growth opportunity for Metal Shark, which went on to add a third Louisiana facility after divesting most of its Alabama holdings. (Metal Shark said it had "retained a portion of its Alabama waterfront to support ongoing training, trials, and autonomous testing.")

"Last year, Birdon America, Inc. approached Metal Shark about acquiring our Alabama operations," Metal Shark CEO Chris Allard said in a company announcement . "They put forth an offer that made good business sense for us while providing long-term opportunities for our Alabama team members. With the sale of our refit and repair business and steel boat building operations now concluded, we are refocusing our energies and doubling down on our core business: the design and construction of durable, high performance, manned and autonomous welded aluminum vessels."

Birdon said the acquisition would "ensure the successful delivery" of the WCC program.

"The investment in this facility will not only ensure we deliver on our promise to the U.S. Coast Guard, but it will also provide an opportunity for our subcontract partners in southern Alabama to build and install all components of these vessels in one location," Birdon Group CEO Jamie Bruce said at the time.

From the time Birdon announced its purchase of the Metal Shark yard, it made no secret of its plans to upgrade the facility. Birdon said it would retain the existing workforce, and that it planned to make "significant capital outlays in the shipyard's infrastructure."

"A direct result will be the creation of 300 jobs in the area over the next two years," Birdon said.

At the time, it described the Bayou La Batre shipyard as "a fully developed shipyard fronting a dredged deepwater inlet. It includes five steel buildings for fully self-contained fabrication and construction work, with over 1,700′ of waterfront, a 660-ton Travelift, multiple cranes, and all required equipment for the construction of steel and aluminum vessels up to 300' in length and 1,500 tons launch weight. The shipyard is situated just minutes from the Intracoastal Waterway with direct access to the Gulf of Mexico."

The shipbuilder's newest announcement provides additional detail on its reasons for acquiring Metal Shark's Bayou La Batre yard and its planned upgrades.

"Subcontracting or leasing space at another yard was one of the options considered to facilitate production, but ultimately, Birdon determined that investing in its own yard was the best option to build and deliver these vessels," said a company news release. "Many of the key suppliers for WCC are located on the Gulf Coast, making Bayou La Batre an ideal location for this program."

"The shipyard's previous certification only permitted lifting U.S. Coast Guard vessels under 65 feet in length," said the announcement released on Thursday. "In August of this year, Birdon received U.S. Coast Guard certification that its facilities now meet the requirements for docking, repairing, and relaunching any U.S. Coast Guard vessel up to 589 long tons. This certification indicates that Birdon's Alabama shipyard has the equipment, processes, and technical capabilities necessary to lift and launch the new WCC vessels.

"Additional capital improvement expenditures are underway to facilitate the WCC program and will result in a facility with the capacity to build up to four vessels simultaneously and dock up to six vessels alongside," said the company.

In July, Birdon received a grant of just under $1 million from the U.S. Department of Transportation. The Marine Administration (MARAD) Small Shipyard Grant will go toward an automated welding system (AWS).

Birdon described the welding system as "a revolutionary shipbuilding technology that allows for precision welding of large panels typically difficult or impossible to access from both sides." It said the AWS "decreases costs, provides greater consistency and superior quality of welds, increases the speed of output for large panel welds, and is both safer to operate and significantly more energy efficient than older models. The AWS system will be the centerpiece in Birdon's new 65,000 square foot vessel fabrication center."

"Birdon is committed to delivering the highest quality vessels and providing its employees with modern tools, equipment, and buildings to enable them to perform their skilled trades efficiently and safely," said Bruce. "Our investments reflect that commitment, and we look forward to opening our new purpose-built onsite facilities in the coming months."

According to information provided by the Mobile Chamber, construction on the shipyard upgrades will begin immediately and should be complete by August 2027. Birdon was contracted to deliver the 27 new ships over the next 10 years.