New subs technology provides $381m boost to South Australia’s defence shipbuilding industry

Australia’s Collins class submarines will receive a $381m upgrade in a decision which was made just before the government went into caretaker mode.

South Australia’s defence shipbuilding industry has received a boost ahead of the election with the government announcing a $381m investment to upgrade the nation’s submarine fleet with a cutting edge optronics system.

The significant upgrade will bring Australia’s periscope technology in line with its overseas counterparts in the US and UK, ensuring the Collins class fleet remains a potent capability in the current strategic environment.

The non-hull penetrating system places a digital camera on an extendible mast-raising system outside the pressure hull. Imagery is captured by the new optronics system at a much faster rate and transmitted into the submarine digitally via a watertight cable, making the submarines more agile and effective.

It is the latest step in the AUKUS deal, which will provide submariners valuable experience using a capability which will be part of the future nuclear-powered submarine fleet.

Defence Minister Peter Dutton will visit the Osborne Shipyard on Monday to make an official announcement, which will create 20 extra shipbuilding jobs in South Australia.

“The optronics system will help maintain the tactical advantage in intelligence gathering, surveillance, reconnaissance, and anti-surface warfare,” Mr Dutton said.

“It will make our submarines stealthier by reducing the amount of time the submarine is exposed above the surface. Stealth is vital to a submarine.

Collins Class submarines HMAS Collins, HMAS Farncomb, HMAS Dechaineux and HMAS Sheean in formation while transiting through Cockburn Sound, Western Australia. Picture: Royal Australian Navy

HMAS Rankin conducts helicopter transfers in Cockburn Sound, Western Australia, as part of Rankin's training assessments to ensure the boat is ready to deploy.

HMAS Rankin will be the first submarine to undergo the upgrade at Osborne in 2024, with the technology operational by 2026.

“The majority of integration, software development and installation work for the Optronics will be carried out in Australia,” Mr Dutton said.

The multimillion-dollar investment is locked as the decision was taken just before the government went into caretaker mode.

The announcement comes two weeks after Port Adelaide shipbuilding company MG Engineering called for more information on the AUKUS nuclear submarines.

Defence Minister Peter Dutton. Picture: Evan Morgan

MG Engineering managing director Anthony Brdar said the decision to scrap its submarine contract with Naval Group underlined the risk associated with major defence projects.

The government says its commitment to naval shipbuilding will support 5000 jobs in South Australia by the end of the decade.

This will facilitate the delivery of eight n`uclear-powered submarines as well as nine Hunter class frigates at a cost of $44.1bn, and two Arafura class offshore patrol vessels at a cost of approximately $800m.