German company Lurssen wants to build navy ships in Australia for export around Asia-Pacific region
GERMAN shipbuilder and designer Lurssen wants to partner with Adelaide-based ASC and create a navy shipbuilding export industry in Australia.
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GERMAN shipbuilder and designer Lurssen wants to use a partnership with Adelaide-based ASC as a springboard to create an Australian manufacturing base to export navy ships around the region.
Lurssen chief Peter Lurssen will on Tuesday visit Adelaide to unveil the company’s proposal to partner with the ASC and West Australian-based Civmec/Forgacs to build 12 offshore patrol vessels for the Federal Government.
The company also has ambitions to use ongoing relationships with the ASC and Civmec/Forgacs to create a regional manufacturing and export hub in Australia.
The Federal Government has decided that the first two offshore patrol vessels will be built in Adelaide and the final 10 at Henderson in WA. Lurssen Australia is one of three companies short-listed to design the vessels.
Lurssen Australia plans to establish an Australian base in Perth but significant work on its export projects could also be conducted by Adelaide-based companies.
The company said the establishment of an export base in Australia would lead to the creation of advanced manufacturing jobs and boost the economies of WA and SA.
“Lurssen looks forward to expanding into the Australian market and contributing to the growth of Australia’s naval shipbuilding industry over the long term,” a company briefing note said.
‘Lurssen’s long-term commitment to Australia will be founded on its establishment of a regional export base to take a new set of Australian shipbuilding skills to the region and beyond.”
Family-owned Lurssen has been building ships for 140 years.
The company said its long-term commitment to Australia would sustain a viable local naval shipbuilding industry and help create job opportunities for staff after the offshore patrol vessels were completed.
Executives from Lurssen, Civmec/Forgacs and the ASC are confident the patrol boats can be built for a reasonable price and that the days of Australian Governments having to pay a large “premium” for local builds were over.
Construction of the offshore patrol vessels will begin in Adelaide in 2018 to help reduce job losses at the ASC, before work on the Future Frigates begins in 2020.
Lurssen saw no difficulties in transferring the build from Adelaide to Perth because similar arrangements often occur in European shipbuilding projects.
Some Adelaide-based ASC staff are expected to relocate to WA with the patrol vessel project.
Another short-listed designer, Damen of the Netherlands, has also proposed a partnership with ASC and Forgacs/Civmec to build the offshore patrol vessels.
German company Fassmer would partner with WA-based Austal.
The offshore patrol vessels will replace the existing Armidale Class patrol boats and the project is expected to cost about $3 billion.
ASC last week told staff that another 57 jobs will go as work on the Air Warfare Destroyers winds down.