Aussie firms rush to nab $900m in submarine contracts

Australian companies are rushing to bid for contracts on the $90bn Future Submarines project, after expressions of interest opened for $900m worth of work.

Expressions of interest have opened for $900m worth of work on the $90bn Future Submarines project and Australian Companies are rushing to bid for contracts.

To date, 124 Australian companies have signalled their intent to bid for 23 major contracts in the first local manufacturing package, released to market in October. 

That includes contracts to build significant equipment, from the submarine’s main shaft line to its weapons handling system.

Almost 2000 Australian businesses have also registered to be part of Naval Group’s wider local supply chain for the 12 new Attack Class submarine, which are expected to begin construction in 2023.   

Premier Steven Marshall and Defence Minister Linda Reynolds have welcomed the flood of interest from local defence companies. 

“There are many great South Australian companies already contributing to the enormous naval build up, and it’s great to see many more wanting to sign up to help with the Attack Class supply chain,” Mr Marshall said.

An Australian Collins Class submarine. Picture: Peter Wallis

The contracts up for grabs would support hundreds of local jobs, Ms Reynolds said.

“Previously, these parts would have been made in France,” she will say in a speech to the Submarine Institute of Australia conference in Canberra today.

The Minister will highlight the fact Naval Group’s commitment to spend at least 60 per cent of its contract in Australia “is not a maximum target, it is a minimum”.

She will also warn the defence industry it needs to be ready for the Attack Class build much faster than it was for the Collins Class subs.

“It took … 15 years from the completion of the Collins Class construction to develop the sovereign industrial capability to effectively support those submarines here in Australia,” she will say.

“For the Attack Class, we need this sovereign capability from day one.”

Naval Group Australia chief executive John Davis said Australian manufacturers had shown they “stand ready to step up and play their part in building submarines that will be critical for Australia’s defence”.

He said the potential benefits from the shipbuilding program were “immense” and would “last a generation”.

Labor’s defence spokesman Richard Marles will tell the conference he has requested the Auditor‑General investigate cost blowouts on the project.

“Being upfront and honest with the Australian public about how their money is being spent is not optional,” he will say.