BAE Systems victorious in £20bn Australian frigate tender
01 July, 2018, 10:51
Australia is based on BAE Systems' Type 26 frigate, one of the world's most advanced anti-submarine warships, which the Company is now constructing in Glasgow for the Royal Navy.
The Hunter class ships for Australia are based on the BAE Type 26 frigate the company is building for the British navy.
The nine ships, to be designed by BAE and built by government-owned ASC Shipbuilding in Australia are expected to underpin the country's maritime combat capability for decades to come, the Australian government said in a statement.
It provides a unique opportunity to not just strengthen, but guarantee Australia's naval shipbuilding sovereignty.
Based on the anti-submarine frigates which the British company is developing for the Royal Navy in the United Kingdom, the warships, called the "Hunter class", will be constructed in Australia by a local workforce.
"This ensures BAE Systems is fully responsible and accountable for the delivery of the frigates and ensures the work will be carried out by Australian workers and create Australian jobs", Turnbull said.
Following a rigorous and comprehensive Competitive Evaluation Process, the Government has assessed BAE's Global Combat Ship - Australia as the capability best suited for our nation.
They are due to enter service in the late 2020s as the backbone of the Australian Navy's fleet, part of the nation's largest peacetime naval investment that also includes 12 new submarines and 12 offshore patrol vessels.
"We have always been clear that as we leave the European Union we have an opportunity to build on our close relationships with allies like Australia", May said in a statement.
BAE Systems Australia Chief Executive Gabby Costigan said the contract was an important milestone in BAE's 65-year relationship with Australia.
The group saw off competition from Spain's Navantia and Italian firm Fincantieri to win the deal, which is part of a 200 billion Australian dollar spending programme by Canberra. Australia will maintain a "sovereign share" in the company during the period and resume complete ownership at the end.
It is the first export of a British design for new-build frigates since the 1970s Theresa May said the deal reflected the government's strategy to "build on our close relationships with allies like Australia" as the United Kingdom prepares to leave the EU.
The Federal government will confirm today, the company's Type 26 Gobal Combat ship, also known as the Hunter class, has been selected for the frigate programme.