Peter Malinauskas MP

The Malinauskas Labor Government welcomes the selection of Adelaide-based shipbuilders ASC Pty Ltd and BAE Systems to build Australia’s SSN-AUKUS submarines at Osborne.

The Federal Government has entered into a collaborative arrangement between the two world-leading companies, who will eventually form a Joint Venture to lead Australia’s sovereign building program for nuclear powered, conventionally armed submarines.

The announcement will be confirmed today in Adelaide ahead of high level AUKMIN talks between the United Kingdom Defence Secretary Grant Shapps and Foreign Secretary Lord David Cameron, and their Australian counterparts, Richard Marles and Senator Penny Wong.

ASC has an unrivalled knowledge of Australian submarine operating conditions, and an existing, highly-skilled workforce and sovereign supply chain, which built and now sustains Australia’s existing Collins Class submarines at Osborne.

As the UK’s long-term nuclear-powered submarine design and build partner, BAE Systems brings critical know-how, intellectual property and over 60 years of nuclear-powered submarine building experience.

BAE Systems is also responsible for building the Hunter class frigates, with work on those surface ships underway at the Osborne Naval Shipyard.

A key activity for the Joint Venture partners will be to develop the detailed program schedule to enable construction to begin on the first SSN-AUKUS submarine by the end of the decade.

Australian industry will have opportunities to contribute right from the beginning, working with ASC and BAE Systems.

Already 26 Australian suppliers are being supported to qualify their products in the US submarine supply chain as part of the AUKUS program.

Planning for a similar program focused on the UK conventionally-armed, nuclear-powered submarine supply chain is underway, and is planned to begin in parallel with the second phase of US qualification with a focus on Australian electrical components and battery suppliers.

The South Australian Government has already exchanged land with the Australian Government to facilitate construction of the new Submarine Construction Yard.

The next step is partnering with the Commonwealth on the design and delivery of a Skills and Training Academy at Osborne to educate and train the submarine and surface shipbuilding workforce.

Between 4,000 and 5,500 direct jobs are expected to support the building of AUKUS submarines when the program reaches its peak.

Quotes attributable to Peter Malinauskas

South Australia has much to be optimistic about. We have the best performing economy in the country, the lowest unemployment rate in history, and for the first time, the lowest jobless rate in the nation.

And all of this is before we embark on the biggest project our state has ever seen – building the most complex machines on earth.

I am thrilled to see confirmation of ASC and BAE Systems as the build partners for our nuclear-powered submarines to be built right here at Osborne.

These two companies each bring considerable strengths.

I saw first-hand BAE Systems’ incredible nuclear submarine building capability at Barrow-in-Furness last year. The scale and complexity of the exercise was mind-blowing.

ASC brings its own unique capabilities. The Australian company has a significant workforce at Osborne and a strong history building and sustaining the Collins class submarines.

We are getting on with the task of partnering with the Commonwealth on making sure we can meet the challenge of delivering the skilled workforce required for this massive undertaking.

Learn more via the Australian Submarine Agency website.

Published On: March 22nd, 2024