Collins class submarine builder ASC in line to build nuclear-powered boats in Adelaide

The Adelaide shipbuilder once derided as unfit to build a canoe is a frontrunner to build at least eight nuclear-powered submarines.

Collins-class submarine constructor ASC – once derided as unfit to build a canoe – is being positioned as the lead firm in the multibillion-dollar project to build at least eight nuclear-powered submarines in Adelaide.

The government-owned ASC will extend the six-strong Collins fleet’s life and continue a lucrative full-cycle docking program under twin projects worth up to $6.4bn, supporting 1300 jobs.

These were confirmed when Prime Minister Scott Morrison on September 16 unveiled plans for at least eight nuclear-powered submarines to be built in Adelaide as part of the newly forged AUKUS partnership with the US and UK.

Senior government sources said ASC was a frontrunner to take a lead role, given the trilateral partnership between three governments was not expected to involve appointing a lead commercial contractor.

This was contrasted to the $90bn deal to design and build 12 diesel-electric submarines in Adelaide – axed in favour of the nuclear option – in which French firm Naval Group was the lead contractor.

Finance Minister Simon Birmingham, Premier Steven Marshall and ASC chairman Bruce Carter hold a press conference at ASC after the joint Australia, USA and British nuclear submarine agreement. Picture Kelly Barnes

At the ASC shipyards, where one of the Collins class subs is about to undergo maintenance.

One option being considered for the nuclear-powered submarines is to partner ASC with British firm BAE Systems, as has occurred with the $45bn project to build nine frigates at Osborne run by BAE Systems Maritime Australia (formerly known as ASC Shipbuilding).

But it is understood ASC has been put on notice to continue improving performance, despite having delivered “unprecedented availability” of the Collins fleet in the past five years.

ASC’s full-cycle docking program has helped the Collins fleet be available for deployment and training for 63.08 per cent of the past financial year, exceeding the international benchmark for comparable submarines of 52 per cent.

Finance Minister Simon Birmingham, the minister responsible for ASC, backed its capabilities and workers.

“The focus and diligence of the ASC workforce have helped to make the Collins-class one of the most reliable and capable conventional submarines in the world,” he said.

“ASC is being entrusted with delivering a crucial extension to the life and capabilities of the Collins-class, which will be a powerful demonstration of their skills.”

Finance Minister Simon Birmingham (left) and Premier Steven Marshall (right) arrive at a press conference at ASC after the joint Australia, USA and British nuclear submarine agreement. Picture Kelly Barnes

ASC, previously the Australian Submarine Corporation, built the six Collins-class submarines at Osborne under a $5bn contract signed in 1987. Three Hobart-class air warfare destroyers also were built by ASC.

This project was $350m over budget by 2014, prompting the-then defence minister David Johnston to infamously declare he would not trust ASC to “build a canoe”.

Mr Morrison announced the AUKUS group in a special early-morning address with US President Joe Biden and British Prime Minister Boris Johnson. But the decision to axe Naval has angered the French, who branded it a stab in the back.