Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Australia accelerates naval shipbuilding program to secure jobs

Published 18/04/2016, 03:26 pm
© Reuters.  Australia accelerates naval shipbuilding program to secure jobs

By Colin Packham

SYDNEY, April 18 (Reuters) - Australia will speed up plans to build more naval vessels in domestic shipyards, Prime Minister Malcolm Turnbull said on Monday, making an announcement that could find favour with voters just weeks ahead of a likely federal election.

Naval shipbuilding is a key part of a plan unveiled in February to boost defence spending by nearly A$30 billion ($23.02 billion) over the next 10 years. speed up the plan, the construction of 12 offshore patrol vessels, worth A$3 billion ($2.30 billion) would now start in 2018, Turnbull said, though the government has still to award the contract.

"Putting our navy in the right situation to keep us safe and putting our naval ship building industry in the right place to build the ships we need for the future is a great national endeavour," Turnbull told reporters.

"It will directly secure more than 2,500 jobs for decades to come."

Construction of the offshore patrol vessels will start in Adelaide, the state capital of South Australia, and be completed in Western Australia.

Opinion polls show ebbing support for Turnbull's Liberal Party, ahead of an election likely to be held on July 2, and South Australia could be a key battleground state. private companies - Dutch based Damen Shipyards, German firms Fassmer and Lürssen - have been shortlisted to build the offshore patrol vessels, Turnbull said.

The timetable for other vessels was unaltered, but Turnbull said it would entail more work for Adelaide's shipyards.

BAE Systems BAES.L , Fincantieri FCT.MI and Navantia have been shortlisted as preferred bidders for the construction of nine frigates that will be built in Adelaide, he said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The orders are expected to be worth more than A$35 billion.

The prime minister said Austal Ships Pty Ltd was selected as the preferred bidder for a contract to construct and maintain up to 21 Pacific patrol boats. The boats would be built in Western Australia and the project was valued at around A$500 million, he added.

While announcing details of Australia's naval shipping plans, Turnbull refused to comment on questions regarding a proposed A$50 billion contract to buy 12 submarines.

Japan's Mitsubishi Heavy Industries 7011.T , French state-owned builder DCNS Germany's ThyssenKrupp TKAG.DE are vying for the contract. ($1 = 1.3034 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.