$10bn Collins-class submarine refit project locked in for South Australia

A major $10bn refit of the Collins-class submarines has been confirmed – and Adelaide is poised to be a big winner.

A complete rebuild of the six Adelaide-built Collins class submarines to extend their life for another decade, at a cost of up to $10bn, has been confirmed by Defence Minister Peter Dutton.

As revealed by the Sunday Mail, it is expected the life-of-type extension work will be done at Adelaide’s naval shipyard.

The Australian on Friday reports Mr Dutton will order the entire Collins fleet to undergo the major rebuild, doubling an initial defence plan to extend just three boats, as a hedge against the fact that the first of 12 Adelaide-built Attack class submarines is not expected to enter service until 2035.

The Sunday Mail on June 6 revealed Adelaide was close to securing two multi-billion dollar naval shipbuilding contracts, the life-of-type extension and the Collins class full-cycle docking – the latter keeping more than 700 jobs in Adelaide.

Collins Class submarines in formation. Picture: Supplied

Mr Dutton told The Australian the life-of-type extension aimed to guarantee the submarine fleet did not fall beyond six boats into the future.

“We need to be realistic about what lies ahead by way of threat in our own region and the submarine capacity is a significant part of how we mitigate that risk and it’s important we get the program right,” he said.

“There is no doubt in my mind that we need to pursue a life-of-type extension (for the Collins class) and we are working on that program now. All six would be on the schedule.”

Mr Dutton visited the Osborne shipyard on Friday to meet workers and navy personnel on his first visit to South Australia since becoming Defence Minister. He did not invite media and will not be making public appearances.