News Story: Australia prime minister - Shipbuilding plan is 'an end to the boom and bust pattern'

A Hobart class (AWD) Destroyer under-construction at the

Osborne Naval Shipyard (ASC) 

By: Nigel Pittaway

MELBOURNE, Australia – Prime Minister Malcolm Turnbull launched Australia's long-awaited naval shipbuilding plan on May 16, including the construction of submarines, frigates and offshore patrol vessels, costing A$89 billion (US $66.12 billion), in Australian shipyards. 

Turnbull launched the shipbuilding program with Defence Minister Marise Payne and Minister for Defence Industry Christopher Pyne at Osborne in South Australia, where the majority of construction work will take place. 

“This is a great national enterprise. This is nation building. This is an end to the boom and bust pattern that we’ve seen with shipbuilding in Australia,” Turnbull said. “This is the largest investment in our defense capability of our Navy ever in peace time.” 

Under the plan, the government will invest in the rolling acquisition of 12 conventionally-powered submarines under Project Sea 1000 (Future Submarine), the continuous build of nine frigates under Project Sea 5000 (Future Frigate) and a follow-on class of surface combats; and a continuous build program for minor naval vessels. 

The minor naval vessels build program is already underway with construction of 19 patrol boats to be gifted to Pacific nations under Project Sea 3036, beginning this year at the Austal facility at Henderson in Western Australia.  This will be followed by the Offshore Patrol Vessel program for the Royal Australian Navy under Sea 1180 from 2018, initially commencing at the Osborne Naval Shipyard and transferring to Henderson in 2020. 

Read the full story at DefenseNews

Industry: Austal to open new shipbuilding design & project management office in Adelaide

Austal (ASX:ASB) is pleased to announce the establishment of a new design and project management office in Adelaide, South Australia, to support the company’s expansion into one of Australia’s two major shipbuilding hubs.

The new office will initially support preparations for the Australian Government’s $3 billion Offshore Patrol Vessel (OPV) project, which will see 12 vessels constructed for the Royal Australian Navy from 2018. It will also enable Austal to prepare for the Government’s Future Frigate project, comprising nine vessels to be constructed in Adelaide from 2020.

Austal has entered into a 50:50 joint venture partnership with German designer Fassmer for the OPV project, offering a customised, low-risk solution based on a proven design platform and build strategy that has successfully delivered seven similar vessels internationally, to date.

The effective, holistic transfer of this new OPV capability to Australian industry will enable local, high quality support for the Royal Australian Navy, build local industry capability and allow Austal - Australia’s largest defence exporter - to pursue new industry-building export opportunities.

Think Tank:Sea, air, land and space updates (6-Dec-2016)

Christopher Cowan, Thulasi Wigneswaran, Elisabeth Buchan and Alexander Vipond

Sea State

Starting off Down Under, the Australian government released a request for tender (RFT) for 12 new offshore patrol vessels (OPVs) last week. In a statement released by Minister for Defence Industry Christopher Pyne, local industry considerations will play a key part of the tender selection process. The RFT requires ‘each tenderer to develop an Australian Industry Capability Plan that maximises the opportunities for Australian industry participation.’ The three shortlisted designers for the new vessels are Damen from the Netherlands and two German firms, Lurssen and Fassmer. The OPVs will replace the Royal Australian Navy’s fleet of 13 Armidale-class patrol craft, at an estimated cost of around $3 billion.

The US Navy’s controversial Littoral Combat Ship (LCS) program came under heavy scrutiny during a testy Senate Armed Services Committee hearing last Thursday. The hearing—in which one of the participants stated that the LCS program ‘broke the Navy’—was part of the release of a damning Government Accountability Office (GAO) report on the failures of the LCS program. The GAO report questioned the Navy’s decision to move ahead on purchasing the program’s final 12 ships, citing poor performance and continued uncertainty about the future vessels’ cost and capabilities.

AUS: Local industry the focus for Offshore Patrol Vessel project

The multi-billion dollar Offshore Patrol Vessel project has reached a significant milestone with the release of the Request for Tender to the three shortlisted designers.

The Minister for Defence Industry, the Hon Christopher Pyne MP said the Request for Tender will see Damen, Fassmer and Luerssen team up with Australian shipbuilders.

“We want to ensure the tenderers’ responses maximise Australian industry opportunities through a local build using Australian made steel,” said Minister Pyne.

“The Request for Tender will require each tenderer to develop an Australian Industry Capability Plan that maximises the opportunities for Australian industry participation.

“This includes how they will transition their existing supply chains to Australian supply chains and how they will integrate local suppliers in their global supply chains.

“The project is expected to create around 400 direct jobs and is part of the Government’s commitment to the continuous build of warships in Australia.”