02/03/2018 - 13:46

$1.2bn frigate contract for Henderson

02/03/2018 - 13:46

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The federal government has signed a $1.2 billion contract extension with a group of defence contractors for maintenance work on eight Anzac-class frigates for the next five years, with BAE Systems and CIMIC's UGL among the major beneficiaries.

$1.2bn frigate contract for Henderson
BAE Systems is upgrading the Royal Australian Navy’s fleet of ANZAC class frigates.

The federal government has signed a $1.2 billion contract extension with a group of defence contractors for maintenance work on eight Anzac-class frigates for the next five years, with BAE Systems and CIMIC's UGL among the major beneficiaries. 

Defence Minister Christopher Pyne announced the extension with BAE, Saab Australia and Naval Ship Management Australia (a joint venture between UGL and Babcock), and said it would secure nearly 1,700 jobs.

“This strategic partnership will see highly skilled jobs secured around the country, including in small and medium-sized businesses,” Mr Pyne said. 

"The majority of the work will be done in Henderson, further cementing it as one of Australia’s naval shipbuilding and sustainment centres.”

BAE said it has secured $780 million while UGL will receive about $250 million revenue from the contract.

The majority of the work will be carried out in Henderson at the Australian Marine Complex, while other components of work will be undertaken in Sydney, Adelaide, and Williamstown.

BAE’s role includes asset management in Rockingham, platform engineering and integration support and major refit and upgrade implementation at Henderson.

Chief executive Gabby Costigan said the company’s experience helped secure the work.

“Our work on this program enables us to retain important skills in engineering and program management which are contributing to our current role providing sustainment services across five different classes of naval surface ships,” she said

“Importantly, the capabilities developed and maintained supporting the Royal Australian Navy will be integral to mobilising a workforce for SEA 5000, should our bid to build nine future frigates be successful.”

BAE recently announced it would be building a $5 million support tower at its Henderson facility.

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