Future Subs funding shifted to Collins Class, while $65m testing facility for Frigates set to begin

Construction of a weapons testing facility for the Future Frigates is set to begin, as $32m is shifted from the Future Subs funding to upgrade the existing fleet.

The $45bn Future Frigates project is ramping up, with construction of a $65m facility to test the warships’ weapons systems set to begin in Adelaide this month.

Two South Australian companies, Novafast International and Century Engineering, and a Victorian firm, have also won more than $800,000 of work on the initial prototyping stage of the nine Hunter-class warships, set to be built by BAE Systems.

The state-of-the-art combat systems testing facility will be built in St Kilda by contractor Hansen Yuncken.

Defence Industry Minister Melissa Price said the company had provided “an outstanding plan” to maximise the opportunities for local businesses to supply goods or services.

“Hansen Yuncken’s target is to have 100 per cent of the work go to businesses in the greater Adelaide region,” Ms Price said.

About 180 jobs will be involved in building the facility, which is expected to be complete by early 2023.

Sturt federal Liberal MP James Stevens welcomed the facility as a win for the local community.

SA-based Novafast International has won a contract with BAE Systems for work on prototyping for the Future Frigates. L-R: Paul Figallo, Anthony Vasileff, Duran McInnes, David Figallo. Picture: James Elsby

Family-owned Novafast International, founded by Charles Figallo and now run by his sons, David and Paul, will make more than 600m of composite pipe and 1500 fittings for the warships’ prototyping phase, after being awarded the contract by BAE Systems.

The company has hired two new employees since winning the contract, and plans to invest in new robotic equipment to upskill and expand.

Mr Figallo said the company was excited to support the defence sector, while working on one of the biggest shipbuilding programs in the country.

Craig Lockhart, managing director of BAE Systems’ maritime Australia program, welcomed bringing local businesses “with established know-how and shipbuilding expertise” into the supply chain.

“At the end of 2020 we commenced prototyping, which means now, more than ever, we need to work with the most capable businesses to support this critical phase of the Hunter program,” he said.

Construction of the Future Frigates, after the initial prototyping phase, is set to begin at the end of 2022 at Osborne, where the 12 Future Submarines will also be built.

Collins Class submarines. Picture: Supplied

FUTURE SUBS FUNDING SHIFTED TO COLLINS UPGRADES

More than $32 million has been stripped from funding for the Future Submarines project and put towards upgrades for the Collins Class fleet.

The money has been reallocated to prepare for major upgrades to the Collins Class subs to extend their life and avoid a capability gap while the new Attack Class fleet is built.

Amid speculation Defence Minister Peter Dutton could bring forward the Collins Class upgrades by two years to 2024, documents provided to Parliament show $32.6m of the Future Subs funding has been reallocated for scoping studies and business cases to overhaul the existing subs’ major systems.

BAE Systems, which is also designing the Future Frigates, conducted two scoping studies for the periscope system.

Raytheon Australia conducted a $2.8m scoping study for the combat systems, while Thales Australia undertook a $683,671 scoping study for the sonar system.

Half of the funding was for a $16m “business case, concept design and workforce capability development” by government-owned shipbuilder ASC, which built the subs and is leading the upgrades.

The federal government approved the reallocation of up to $34m in 2016, the Defence Department has confirmed after questions at Senate Estimates.

A Defence spokesman told The Advertiser: “No further funding from the Future Submarine Program beyond what has already been approved by Government will be allocated to Collins life-of-type extension activities.”

Senator Rex Patrick. Picture: Sam Mooy/Getty Images

South Australian independent Senator Rex Patrick said: “We should be further advanced on [Collins] Life of Type Extension than we are and this is a failing of Defence and Government.”

“This work could have helped train up workers in preparation for the Future Submarines build.”

Senator Patrick said: “There is no question we need to be ramping up our efforts on Collins for the sake of our national security.”

Opposition defence industry spokesman Matt Keogh said there needed to be more transparency on the projects. “They have not been clear on the scope of the Collins Class LOTE, how much it will cost, and indeed whether it will be rolled out across the whole fleet of submarines – or just a couple,” he said.