General Dynamics Electric Boat (the submarine-making unit of General Dynamics) announced on Wednesday that it had received a modification worth $1,85 billion on the contract previously awarded for Virginia class submarines.

The company stated that the modification was for materials with a long lead-time and for preliminary construction for nuclear powered submarines.

According to the notice, the award is expected to be completed in September 2035.

The announcement comes as the U.S. Navy's submarines are years behind schedule due to labor shortages and supply-chain issues.

Mark Rayha said, "This contract modification will allow for the purchase of critical materials and components for Virginia class submarines which require substantial lead times to manufacture and deliver." Reporting by Aatreyee dasgupta in Bengaluru and Utkarsh shetti; editing by Shailesh kuber

(source: Reuters)