Defence jobs to be created in cruise ship Adelaide build by Italian shipbuilder Fincantieri, in lead up to potential frigate

CONSTRUCTION of three blocks to be used to build a cruise ship in Vietnam will start in South Australia almost immediately after two local companies were selected for the build.

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CONSTRUCTION of three blocks to be used to build a cruise ship in Vietnam will start in South Australia almost immediately after two local companies were selected for the build.

Italian shipbuilder Fincantieri – which is bidding for the $35 billion SEA 5000 Future Frigates build in Adelaide – has selected a Port Adelaide and a Whyalla company to build three cruise ship blocks, using 52 tonnes of Australian steel.

Port Adelaide-based MG Engineering will construct two 22.3 tonne blocks, each 11.25m long, 8.6m wide and 7m high.

Whyalla’s Ottoway Engineering will construct one 23 tonne block.

Construction is expected to employ 40 — 50 local workers across the two South

Australian sites.

Fincantieri committed to the block build in November last year as part of the process of engaging with local suppliers in the lead up to the potential frigate build.

Stephen Young of Ottoway Engineering, Anthony Brdar of MG Engineering and Sean Costello of Fincantieri. Picture: Jennie Groom

Fincantieri Australia director Sean Costello said it was crucial to build relationships with local suppliers, and the vision was for much more than the defence program.

“To make the shipbuilding industry work for Adelaide, not only do we have to bring in a lot more subcontracting to the work we have coming from the government, but we need to start an export industry as well,’’ he said.

“The exporting piece is crucial for, as fantastic as the opportunities are from naval shipbuilding, if we’re going to go to the next level and have a whole industry here which can design and build ships and their components then we do need to bring with that the exporting market.’’

Fincantieri’s bid for the frigate build includes listing a local arm of the business on the Australian Securities Exchange, as well as building an export industry and a ship component factory which would also be able to export products such as gearboxes and drive shafts.

Ottoway Engineering chief executive Stephen Young said it was a great opportunity.

“We see naval shipbuilding as being the cornerstone if not the future of manufacturing in South Australia, so we’re very keen to be part of that future and this is one of the stepping stones towards that,’’ he said.

“The most exciting thing about this particular order however, is it’s not only an opportunity to work with Fincantieri and become part of their global supply chain, but they are a global shipbuilder — this will give us a genuine export order which will give us an opportunity to demonstrate our capacity and hopefully grow our business into that opportunity.’’

A Fincantieri-built frigate.

MG Engineering managing director Anthony Brdar said his company was currently working on its first export contract — a 24m trawler — and this would build on that project and provide valuable expertise in working with a global, tier one defence company.

“This project will give us that experience in shipbuilding, and to see how a global company such as Fincantieri works, to build on the experience that we already have.

“And the opportunities that can potentially arise from this through more of these cruise ships being built and also the naval work in the future is obviously very lucrative.’’

An estimated 1000sq m of Australian steel will be used — enough to cover four tennis courts.

Each block is just under the size of a tennis court and together they weigh about the same as six buses.

The three blocks are expected to be completed by the middle of the year.

The blocks will form part of a cruise ship’s superstructure. The two constructed by MG Engineering will sit on the port and starboard sides of the ship and will be dedicated to accommodation areas. The block constructed by Ottoway Engineering will be located in the central part of the ship and will be dedicated to technical zones where emergency generators are located.

Fincantieri is one of three bidders for the SEA 5000 project, with BAE Systems and Navantia also in the running.

A decision is expected mid-year.