none

BAE SYSTEMS FRIGATE DEAL SECURES SA SHIPBUILDING FUTURE

29-06-2018
by 
in 

In awarding the contract to build nine high-tech, anti-submarine frigates to BAE Systems, the Federal Government has not only secured thousands of jobs in the Australian shipbuilding industry, it has laid a platform to increase the capabilities of its own shipbuilding operation ASC.

The deal will see ASC build the nine Hunter Class frigates in South Australia, but it will be in the role of a subsidiary of BAE Systems for the duration of the contract, Finance Minister Mathias Cormann revealed during the announcement of the contract win in Adelaide.

A sovereign share of the company will be retained by the Commonwealth, with full rights over any matters of national security.

However, on conclusion of the project, ASC will revert to Commonwealth ownership, retaining all the expertise and intellectual property gained in the building of the nine vessels.

Both the Prime Minister, Malcolm Turnbull, and the Defence Industries minister, Christopher Pyne, were at pains to point out that the deal that had been struck would see the vessels built “in Austalia, by and Australian workforce and using Australian steel.”

BAE Systems has already qualified more than 500 Australian businesses (including 100 in South Australia) as well as signing deals with both BlueScope and Liberty OneSteel for the supply of more than 48,000 tonnes of Australian steel.

The Hunter Class vessels will be a variant of the Type 26 antisubmarine warship that is currently being manufactured in the UK.

All told, the $35 billion frigate contract is expected to create 4000 jobs in Australian, 1500 of which will be in the ASC shipyard.

Interestingly, the deal is being hailed as a success for the UK economy as well as the Australian industry, despite the vessels being built in Australia.

British Prime Minister, Theresa May, said the export of a British design for the frigates would be an “enormous boost” for the UK economy and touted the deal as an example of opportunities that would open up for Britain after Brexit.

Related news & editorials

  1. 18.10.2018
    18.10.2018
    by      In
    Amidst global concern about plastic waste in the world’s oceans, it is rather ironic that it is a soft drinks company that is actually doing something about the problem. SodaStream International, which has always taken a different approach to the soft drinks market, is now taking a different... Read More
  2. 16.10.2018
    16.10.2018
    by      In
    The Government has unveiled a $5 million scheme to encourage high-quality graduate engineers to work in Australia’s automotive sector. The Automotive Engineering Graduate Programme aims to increase the level of advanced engineering skills in the sector and is part of the $100 million Advanced... Read More
  3. 15.10.2018
    15.10.2018
    by      In
    Industry Update is delighted to announce that we are expanding our video offerings with a new series of tutorial style videos that perfectly complement our existing library of news style videos.
    In the first series, we are partnering with sensor specialist VEGA to publish eight playlists of videos... Read More
  4. 15.10.2018
    15.10.2018
    by      In
    Kennards Hire is certainly “doing its bit” to help Australia’s drought stricken farmers and their families. The work began with the Kennards branch network throwing itself behind the Buy a Bale initiative, and is now continuing with a key role in the Mega Farm Rescue.
    Kennards Hire team members... Read More