Washington: South Carolina-based US Navy contractor KEEL is planning to invest $70 million in three new facilities totalling 60,000 square feet focused on submarine and aircraft carrier component manufacturing in Charleston, the company’s chief executive said.
“We’re purpose building KEEL to help solve the capacity challenges in nuclear Navy shipbuilding,” said Brian Carter. “This is a critical step in us adding capacity to the industry that will directly impact and improve the schedule for building both Virginia [and] Columbia [class submarines] and future aircraft carriers.”
The company, which took its current shape in January 2024, was formed through a merger of two South Carolina companies — fabricator Pegasus Steel and Shipyard Metal Trades — along with the Michigan-based Merrill Technologies Group.
Its current work for the US Navy is focused on building the Columbia-class submarine superstructures that are ultimately delivered — by truck or barge — to prime contractors General Dynamics Electric Boat and HII Newport News. KEEL also fabricates numerous components to be used on future Ford-class aircraft carriers.
Carter said the expansion will include three facilities that will all start construction in 2025 or 2026 and be completed by or in 2027: a preparation and paint building; a facility for Columbia-class superstructure fabrication; and a building for employees.
KEEL’s announcement comes on the heels of numerous other Navy contractors announcing expansions in the region. HII earlier this year closed on its acquisition of metal fabricator W International. Meanwhile, Leonardo DRS last week also announced a facilities expansion in South Carolina focused on manufacturing space for naval propulsion technologies.
Carter said South Carolina’s proximity from HII and General Dynamics Electric Boat is likely a key factor in why numerous other Navy contractors are opening up shop in the region.
“It’s critical that it’s an easy voyage, if you will, for both truckable and bargeable components to both Newport News and Electric Boat,” he said. “But it’s far enough away where it’s a different labour market, and we can tap into some really great infrastructure here for training and developing our trades workforce.”
